Currency traders expect the dollar to appreciate. What impact will this have on equilibrium in the foreign exchange market?
A) The dollar will appreciate, and the equilibrium quantity of dollars will increase.
B) The dollar will depreciate, and the equilibrium quantity of dollars exchanged will decrease.
C) The dollar will appreciate, and the equilibrium quantity of dollars will decrease.
D) The dollar will appreciate, and the change in the equilibrium quantity of dollars exchanged cannot be determined.
D
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Suppose that entry of new firms into an industry significantly increases the market demand for a key input. If supply of the key input is very price inelastic, then, for each firm in the industry in the long run,
a. external diseconomies shift its entire ATC curve upward b. external economies shift its entire ATC curve downward c. external diseconomies move it to the left along its original ATC curve d. diseconomies of scale shift its entire ATC curve upward e. economies of scale shift its entire ATC curve downward
Which of the following is not a characteristic of most less-developed countries?
a. Inadequate human capital b. High population growth rate c. Inadequate capital goods d. High productivity e. Inadequate water supplies