Solved

How Would a Decrease in the U

Question 170

Multiple Choice

How would a decrease in the U.S.budget deficit affect the exchange rate in the market for dollars?


A) The exchange rate will increase.
B) The exchange rate will decrease.
C) The exchange rate will not be affected by a change in the budget deficit.
D) The impact of the decrease in the budget deficit on the exchange rate cannot be predicted.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q165: An increase in capital outflows from the

Q166: Public saving equals taxes minus government spending

Q167: Contractionary monetary policy should increase foreign financial

Q168: Net foreign investment is a measure of

Q169: When exchange rates are _,we say that

Q171: A decision by foreign central banks to

Q172: If the balance of the current account

Q173: Figure 18-1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1236/.jpg" alt="Figure 18-1

Q174: Although based in the United States,Amazon is

Q175: Why does continued foreign investment in U.S.stocks