Suppose U.S. consumers start buying more English shoes and fewer U.S. shoes. What impact will this trend have on the foreign exchange market?
a. U.S. demand for foreign exchange, in general, and British pounds, in particular, will increase.
b. U.S. demand for foreign exchange, in general, and British pounds, in particular, will decrease.
c. U.S. demand for British pounds will increase, but the demand for foreign exchange will probably decrease.
d. U.S. demand for British pounds will decrease, but the demand for foreign exchange will probably increase.
e. There is no effect on foreign exchange.
A
You might also like to view...
In a Dutch auction, the higher the bid, the ________ the surplus and the ________ chance of winning
A) higher; lower B) lower; higher C) higher; higher D) lower; lower
A decrease in aggregate demand will
A) cause the short-run Phillips curve to shift to the right. B) decrease unemployment. C) move the economy to a lower point on the short-run Phillips curve. D) cause inflation.