All else equal, if the risk associated with U.S. stocks is perceived to have fallen compared to financial assets in other countries, then the market equilibrium value of the exchange rate for the U.S. dollar will:

A. rise.
B. be equal to the value chosen by the Federal Reserve.
C. become fixed.
D. fall.

Answer: A

Economics

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List the factors that change demand and shift the demand curve. Tell what happens to demand and the demand curve when there is an increase in the factor

What will be an ideal response?

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In the calculation of GDP by the expenditure approach, exports from the United States must be

A) subtracted because they are included in the consumption of a foreign country. B) ignored because they are not bought by U.S. citizens. C) subtracted if they are bought by foreign firms for investment purposes. D) added.

Economics