How will an increase in the expected future exchange rate affect the current supply and demand curves for dollars?
What will be an ideal response?
An increase in the expected future exchange rate increases the return from holding U.S. dollars. As a result, the demand for dollars increases and the demand curve shifts rightward while the supply of dollars decreases and the supply curve shifts leftward.
Economics
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A call option is in the money if the futures price is greater than the strike price.
a. true b. false
Economics
Use the Cobb-Douglas production function to explain why even massive movements of labor and capital across national borders may have little impact on differences in per capita income
What will be an ideal response?
Economics