If interest rates fall in country A, other things constant,
a. demand for that country's currency will fall and the currency will depreciate
b. demand for that country's currency will fall and the currency will appreciate
c. demand for that country's currency will rise and the currency will depreciate
d. demand for that country's currency will rise and the currency will appreciate
e. people in country B will pull money out of country A
A
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Refer to the scenario above. If the local government has a progressive tax system, which family pays the largest amount as tax?
A) The first household B) The second household C) The third household D) The fourth household
Which of the following assumptions made in deriving the simple deposit multiplier is unrealistic?
A) The Fed sets the required reserve ratio. B) The Fed is able to affect the level of reserves in the banking system. C) Banks loan out all of their excess reserves. D) The simple deposit multiplier is equal to 1 divided by the required reserve ratio.