If the current exchange rate is 1.00 euro per dollar and the expected exchange rate at the end of the month rises to 1.20 euros per dollar, then the demand for dollars ________ because people expect holding of dollars to become ________ profitable
A) decreases; more
B) increases; less
C) increases; more
D) does not change; neither more nor less
E) decreases; less
C
Economics
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If the Federal Reserve raises the discount rate, banks will be inclined to borrow additional reserves and the money supply will increase
Indicate whether the statement is true or false
Economics
Explain what is a "vehicle currency." Why is the U.S. dollar considered a vehicle currency?
What will be an ideal response?
Economics