When there is a shortage of dollars in the foreign exchange market, the
A) U.S. exchange rate will appreciate.
B) supply curve of dollars shifts rightward to restore the equilibrium.
C) demand curve for dollars shifts leftward to restore the equilibrium.
D) U.S. exchange rate will depreciate.
E) supply curve of dollars shifts leftward to restore the equilibrium.
A
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An increase in planned real investment spending causes
A) a shift of the C + I + G + X curve but has no effect on the aggregate demand curve. B) a movement along the C + I + G + X curve and a shift of the aggregate demand curve. C) a shift of the C + I + G + X curve that causes the aggregate demand curve to shift. D) a shift of the C + I + G + X curve and a movement along the aggregate demand curve.
Refer to Table 9-12. If the actual terms of trade are 1 belt for 1.5 swords and 50 belts are traded, how many swords will Estonia gain compared to the "without trade" numbers?
A) 25 B) 75 C) 100 D) 125