If for some reason U.S. residents increase their purchases of foreign assets, then all else constant which curve in the market for foreign-currency exchange shifts and which direction does it shift? What happens to the exchange rate?
The supply of dollars shifts right causing the exchange rate to fall.
Economics
You might also like to view...
Monetary policy has a ________ effect on aggregate demand in a(n) ________ economy, and fiscal policy has a ________ effect on aggregate demand in a(n) ________ economy
A) stronger; closed; weaker; open B) stronger; open; weaker; open C) weaker; open; weaker; open D) weaker; closed; weaker; closed
Economics
Explain how the concept of externalities helps in demarcating the boundaries between the roles of government and private sector in health and health care
What will be an ideal response?
Economics