Which of the following would be most likely to cause an appreciation of the dollar relative to foreign currencies?
a. higher domestic interest rates
b. a reduction in the rate of inflation abroad
c. a shift to a more expansionary monetary policy
d. rapid growth of income in the United States
A
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What evidence exists that industrial concentration increases the rate of technologicaladvance?
What will be an ideal response?
Suppose that an increase in a nation's income causes the nation's residents to buy more domestic and foreign goods. Given this, if U.S. residents experience an increase in income, but Mexican residents do not, it is likely that, ceteris paribus,
A) both the U.S. dollar and the Mexican peso will depreciate. B) both the U.S. dollar and the Mexican peso will appreciate. C) the U.S. dollar will depreciate and the Mexican peso will appreciate. D) the U.S. dollar will appreciate and the Mexican peso will depreciate.