Other things remaining the same, the
A) larger the value of U.S. imports, the smaller is the quantity of foreign currency demanded.
B) larger the value of U.S. imports, the greater is the quantity of U.S. dollars supplied to the foreign exchange market.
C) lower the exchange rate, the cheaper are foreign-produced goods and services.
D) higher the exchange rate, the greater is the expected profit from selling dollars.
B
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In the above figure, a movement from point B to point C represents
A) an increase in the quantity of money demanded. B) a decrease in the quantity of money demanded. C) a decrease in the demand for money that might be the result of an increase in real GDP. D) an increase in the demand for money that might be the result of a fall in the price level. E) an increase in the demand for money that might be the result of an increase in real GDP.
Your real wealth is measured as the
A) amount of assets you have in dollar terms. B) amount of money you have. C) amount of goods and services your wealth will buy. D) amount of goods you have divided by the price level.