If the demand for U. S. dollars goes down, the exchange rate will
A) increase and, as a result, net exports in the United States will decrease.
B) decrease and, as a result, net exports in the United States will increase
C) increase and, as a result, net exports in the United States will increase
D) decrease and, as a result, net exports in the United States will decrease
Ans: B) decrease and, as a result, net exports in the United States will increase
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If the marginal propensity to consume foreign imports(MPC F) is equal to 0.15, then a(n):
a. increase in domestic consumption will generate a 15% rise in imports. b. decrease in domestic consumption will generate a 15% rise in imports. c. increase in domestic income will generate a 15% rise in imports. d. decrease in domestic income will generate a 15% rise in imports.
Interest rates will increase if the Fed conducts an open market purchase
Indicate whether the statement is true or false