Assume the interest parity condition holds and that initially i = i*. A reduction in the foreign interest rate (i*) will cause
A) an increase in the demand for the domestic currency.
B) an increase in E.
C) an expected depreciation of the domestic currency.
D) all of the above
C
Economics
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If the government increases expenditures on goods and services and increases taxation by the same amount, which of the following will occur?
a) aggregate demand will be unchanged b) aggregate demand will increase c) interest rates will decrease d) the money supply will decrease e) the money supply will increase
Economics
The supply curve is influenced by
A) the income of consumers. B) the number of customers in the market. C) the prices of the inputs required to produce the product. D) the expectations of future profit.
Economics