In the foreign exchange market, the demand for dollars increases and the demand curve shifts if the
A) U.S. exchange rate falls.
B) expected future exchange rate falls.
C) U.S. interest rate differential decreases.
D) U.S. exchange rate rises.
E) U.S. interest rate differential increases.
E
Economics
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A) is possible if the consumption of a good is characterized by excludability. B) is possible if the consumption of a good is characterized by nonexcludability. C) is characteristic of private goods. D) occurs when consumers pay too much for services provided by government.
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A real cost of tariffs and quotas that is difficult to measure is that they
A) encourage rent seeking. B) shift income from consumers to producers. C) limit the quantity of imports. D) reduce wages. E) cause deflation.
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