Suppose the market for dollars is in equilibrium, then the expected future exchange rate rises. What effect does this change have on the current exchange rate?
A) It will rise.
B) It will fall.
C) It will remain unchanged.
D) Because both the supply and demand curves shift, the effect on the exchange rate is unpredictable.
A
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Walmart has been pursuing improvements in its reputation in response to growing criticism on environmental, labor, and social issues in its foreign supplier factories. Among others, which requirement has Walmart imposed on its Chinese suppliers?
a. They must demonstrate compliance with Chinese environmental laws. b. There must be a 100% improvement in energy efficiency at China's 200 largest suppliers. c. They must increase their wages to the equivalent of the U.S. minimum wage. d. It has imposed all of these on its Chinese suppliers.
Which of the following is the least likely to be investment?
A. a household buying a new house B. a household saving for retirement C. GM building a new factory D. a car dealer adding to its cars on hand