Everything else equal, an increase in the demand for dollars in exchange for pesos:
A) will cause the dollars to appreciate against the pesos and will increase the quantity of dollars being traded in the foreign exchange market.
B) will cause the dollars to appreciate against the pesos and will decrease the quantity of dollars being traded in the foreign exchange market.
C) will cause the dollars to depreciate against the pesos and will increase the quantity of dollars being traded in the foreign exchange market.
D) will cause the dollars to depreciate against the pesos and will decrease the quantity of dollars being traded in the foreign exchange market.
A
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If the nominal interest rate is 8.25% and inflation rate is 3%, the real interest rate is ________
A) 5.25% B) 2.75% C) 1.25% D) 11.25%
An economy using money is more efficient that a barter economy because the use of money reduces the time spent searching for trading partners with a coincidence of wants and therefore more time can be spent producing goods and services
a. True b. False Indicate whether the statement is true or false