If interest rates rise in the United States and remain the same in the South Pacific, then what can we expect to occur in the foreign exchange market for yaps (South Pacific currency)?
a. nothing
b. an increase in its equilibrium price
c. a decrease in its equilibrium price
d. a shift in the supply of yaps
e. an increase in the equilibrium quantity of yaps
C
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The demand for money schedule shows the ________ relationship between money demand and the nominal interest rate which means that as the ________
A) negative; opportunity cost of holding money increases, the nominal interest rate increases B) negative; nominal interest rate increases, the opportunity cost of holding money increases C) positive; nominal interest rate increases, the opportunity cost of holding money increases D) positive; nominal interest rate increases, the opportunity cost of holding money decreases E) negative; nominal interest rate increases, the opportunity cost of holding money decreases
Refer to Scenario 11.1. How much would Mariana expect to pay each landowner for his or her land?
A) $200,000 B) $400,000 C) $600,000 D) $3 million