Multiple Choice
If for some reason Americans desired to decrease their purchases of foreign assets,then other things the same
A) both the real exchange rate and the quantity of dollars exchanged in the market for foreign-currency exchange would fall.
B) both the real exchange rate and the quantity of dollars exchanged in the market for foreign-currency would rise.
C) the real exchange rate would rise and the quantity of dollars exchanged in the market for foreign-currency would fall.
D) the real exchange rate would fall and the quantity of dollars exchanged in the market for foreign-currency would rise.
Correct Answer:
Verified
Correct Answer:
Verified
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