Answer the following questions true (T) or false (F)
1. If currency speculators decide that the value of the dollar should rise in the future relative to the yen, this will increase the demand for dollars and decrease the supply of dollars.
2. A real appreciation of the dollar is caused by either a nominal appreciation of the dollar, a rise in the foreign price level, or a fall in the U.S. price level.
3. A rise in the dollar price of the Chinese yuan signals an appreciation of the yuan and a depreciation of the dollar.
1. TRUE
2. FALSE
3. TRUE
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A(n) ________ in private expenditures as a result of a(n) ________ in government purchases is called crowding out
A) increase; decrease B) decrease; decrease C) decrease; increase D) increase; increase
What is produced and exchanged in the real sector?
A. Money B. Financial assets C. All assets with a money price D. Goods and services