In which market should you begin your analysis if the domestic stock market is attracting more foreign investors? Which curve shifts initially?
a. Foreign exchange market, with a shift in the demand for domestic currency
b. Real loanable funds market, with a shift in the demand for real loanable funds
c. Foreign exchange market, with a shift in the supply of domestic currency
d. Real goods market, with a shift in aggregate supply
e. Real loanable funds market, with a shift in the supply of real loanable funds
.A
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The real quantity of money is
A) inversely related to GDP. B) measured in current dollars. C) inversely related to the price level. D) measured in constant dollars.
Economists generally assume that
a. firms act to maximize the dividends paid to stockholders b. households act to maximize their wealth c. households act to maximize utility d. firms act to maximize revenue e. both households and firms act to minimize expenditures