The lower the exchange rate today, ceteris paribus, the
A) greater is the expected profit from buying U.S. dollars today and holding them.
B) smaller is the expected profit from buying U.S. dollars today and holding them.
C) greater is the expected profit from buying foreign currency today and holding it.
D) smaller the quantity of U.S. dollars demanded in the foreign exchange market today.
A
You might also like to view...
A country reports that unplanned inventories increased during 2012. The increase in unplanned inventories leads to
A) firms decreasing production, which decreases GDP. B) actual aggregate expenditure being different than real GDP. C) consumers increasing their consumption expenditure, which increases GDP. D) firms increasing production, which increases GDP. E) the government decreasing production, which decreases GDP.
In a small Asian country, it is estimated that changing the level of capital from $8 million to $12 million will increase real GDP from $5 million to $6 million
If the number of hours worked in the labor force does not change, what does this information tell you about the slope of the per-worker production function in this range? A) The slope is -4. B) The slope is 1/4. C) The slope is 4. D) The slope is 8.