Multiple Choice
If inflation in New Zealand suddenly increased while U.S. inflation stayed the same, there would be:
A) an inward shift in the demand schedule for NZ$ and an outward shift in the supply schedule for NZ$.
B) an outward shift in the demand schedule for NZ$ and an inward shift in the supply schedule for NZ$.
C) an outward shift in the demand schedule for NZ$ and an outward shift in the supply schedule for NZ$.
D) an inward shift in the demand schedule for NZ$ and an inward shift in the supply schedule for NZ$.
Correct Answer:

Verified
Correct Answer:
Verified
Q16: Liquidity of a currency can affect the
Q17: The main effect of interest rate movements
Q18: Any event that increases the U.S. demand
Q19: The phrase "the dollar was mixed in
Q20: Investors from Germany, the United States, and
Q22: When the "real" interest rate is relatively
Q23: Which of the following is not mentioned
Q24: British investors frequently invest in the U.S.
Q25: Illiquid currencies tend to exhibit _ volatile
Q26: Relatively high Japanese inflation may result in