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    Exam 9: The Exchange Rate and the Balance of Payments
  5. Question
    -In the Figure Above, the Shift in the Demand Curve
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-In the Figure Above, the Shift in the Demand Curve

Question 264

Question 264

Multiple Choice

  -In the figure above, the shift in the demand curve for U.S. dollars from D<sub>0</sub> to D<sub>1</sub> could occur when A)  the expected future exchange rate falls. B)  the U.S. interest rate drops. C)  people expect that the dollar will depreciate. D)  foreign interest rates drop.
-In the figure above, the shift in the demand curve for U.S. dollars from D0 to D1 could occur when


A) the expected future exchange rate falls.
B) the U.S. interest rate drops.
C) people expect that the dollar will depreciate.
D) foreign interest rates drop.

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