Which of the following would cause the US dollar to increase in value compared to the Japanese yen?
(a) An increase in the money supply in the US
(b) An increase in interest rates in the US
(c) An increase in the US trade deficit with Japan
(d) The US purchase of gold on the open market
(e) The sale of $2 billion dollars worth of Japanese television sets to the US
Ans: (b) An increase in interest rates in the US
Economics
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It is possible that when the money supply rises, interest rates may ________ if the ________ effect is more than offset by changes in income, the price level, and expected inflation
A) fall; liquidity B) fall; risk C) rise; liquidity D) rise; risk
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The federal government agency that is responsible for determining the inflation rate and the unemployment rate is the Federal Reserve
Indicate whether the statement is true or false
Economics