An increase in U.S. income that increases American demand for all normal goods (including imports from Britain) will shift
a. the U.S. demand curve for foreign exchange to the right, causing an increase in the dollar-per-pound exchange rate
b. the U.S. demand curve for foreign exchange to the left, causing a decrease in the dollar-per-pound exchange rate
c. the U.S. supply curve for foreign exchange to the right, causing a decrease in the dollar-per-pound exchange rate
d. the U.S. supply curve for foreign exchange to the left, causing an increase in the dollar-per-pound exchange rate
e. neither the U.S. demand curve for foreign exchange nor the U.S. supply curve for foreign exchange
Question 2
One reason investors may prefer bonds over stocks is
a. potential profits are larger
b. bond prices never vary
c. bondholders get paid before stockholders
d. owning bonds implies owning a part of the company
e. interest rates do not affect the value of bonds
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Many diesel fuel additives increase the cetane rating which results in improved fuel economy.
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