If a British student pays her way to attend Harvard University, her action will:
A) cause the exchange rate of the British pound to rise.
B) cause the exchange rate of the U.S. dollar to fall.
C) change the supply of dollars in the foreign currency market.
D) change the supply of pounds in the foreign currency market.
Ans: D) change the supply of pounds in the foreign currency market.
You might also like to view...
Which of the following gives rise to a pecuniary externality?
A) Excessive consumption of alcohol leading to ill health B) Sudden increase in the demand for diamonds leading to an increase in their price C) Deforestation leading to the extinction of many species D) Globalization leading to the displacement of indigenous workers
Why isn't slope as useful as elasticity to measure the responsiveness of one variable to another?
What will be an ideal response?