The supply of dollars in the foreign exchange market decreases and that means that the supply curve of dollars shifts leftward if
A) the U.S. interest rate differential decreases.
B) the expected future exchange rate rises.
C) the exchange rate for the dollar rises.
D) the U.S. interest rate decreases.
B
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Assume foreign beer is a normal good. If the incomes of demanders increase,
A) demand for foreign beer will increase. B) the quantity supplied of foreign beer will increase. C) the price of foreign beer will increase. D) all of the above will occur. E) none of the above will occur.
Economists consider the model of perfect competition useful because:
a. it is a standard for analyzing producer and consumer benefits. b. its assumptions exactly fit into actual conditions in some markets. c. its assumptions can be easily replaced with realistic ones. d. it is a standard for analyzing consumer choices.