If prices rise within a country, then, other things equal, the value of a unit of domestic currency will:
a. rise in both the domestic and the foreign exchange markets.
b. fall in both the domestic and the foreign exchange markets.
c. rise in the domestic market and fall in the foreign exchange market.
d. fall in the domestic market and rise in the foreign exchange market.
e. fluctuate unpredictably in both domestic and foreign exchange markets.
b
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The table above gives the quantity of money and money demand schedules. Suppose that the interest rate is equal to 6 percent. The effect of this interest rate in the money market is that
A) the money market is in equilibrium. B) people buy bonds and the interest rate falls. C) people sell bonds and the interest rate falls. D) bond prices fall and so the interest rate falls.
By the year 2100, global warming may lead to
a. shifts in world rain patterns. b. disruption of agriculture. c. expanded deserts. d. coastal inundation. e. all of the above