Multiple Choice
A decrease in the United States interest rate relative to the Japanese interest rate will cause the exchange rate, measured in yen per dollar, to ____ as international investors ____ their demand for dollar-denominated assets.
A) rise; increase
B) fall; increase
C) rise; decrease
D) None of these are correct because only the government can change the exchange rate.
E) fall; decrease
Correct Answer:
Verified
Correct Answer:
Verified
Q2: If the nongovernment share of GDP shifts
Q3: All else held constant, interest rates will
Q4: If the dollar appreciates against the Chinese
Q5: Which of the following best describes the
Q6: The consumption share is negatively related to
Q7: If GDP increases, then it is possible
Q8: The steeper the consumption share line, the
Q9: All else being equal, an increase in
Q10: Consumption is less sensitive than investment to
Q11: A tax cut has the same long-run