Other things the same, which of the following could be a consequence of an appreciation of the U.S. real exchange rate?
a. John, a French citizen, decides that Iowa pork is now relatively less expensive and orders more for his restaurant.
b. Nick, a U.S. citizen, decides that the trip to Nepal he's been thinking about is now affordable.
c. Roberta, a U.S. citizen, decides to import fewer windshield wipers for her auto parts company.
d. All of the above are correct.
b
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If the Fed is concerned about a possible recession, it ________ the federal funds rate, which ________ the quantity of money and ________ the amount of bank loans
A) raises; decreases; decreases B) lowers; decreases; decreases C) lowers; increases; decreases D) raises; increases; increases E) lowers; increases; increases
Swaps are __________ agreements involving the exchange of interest payments __________
A) standardized; against a bundle of Treasury securities B) standardized; on a stated notional principal amount C) customized; against a bundle of Treasury securities D) customized; on a stated notional principal amount