The story in the textbook about helium, hydrogen, and the German zeppelin program is meant to illustrate the importance of

If, at the current exchange rate between the dollar and the Norwegian kroner of 5.78 kroner per dollar, the dollar is "overvalued," how do you expect demand and supply in the foreign exchange markets to respond?

A) The demand for the dollar will fall, while the supply of the kroner will rise. B) The demand for the dollar will rise, while the supply of the kroner will fall. C) The supply of the dollar will rise, while the demand for the kroner will fall. D) The supply of the dollar will rise, while the demand for the kroner will rise.

Capital inflows occur if foreign interest rates are greater than domestic interest rates

Indicate whether the statement is true or false