Which of the following would both make a country's real exchange rate rise?
a. its budget deficit increases and bonds issued in the country become riskier
b. bonds issued in that country become riskier and it imposes an import quota
c. it imposes an import quota and the budget deficit increases
d. None of the above are correct.
c
Economics
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As the expected profit from holding dollars ________, the quantity of ________
A) increases; dollars demanded increases B) increases; dollars demanded decreases C) decrease; foreign currency demanded decreases D) None of the above answers is correct.
Economics
Refer to Figure 24-1. Ceteris paribus, an increase in the price level would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
Economics