Question : 41) When the U.S. interest rate differential ________, the demand : 1240709

 

 

41) When the U.S. interest rate differential ________, the demand for dollars ________ and the demand curve for dollars shifts rightward.

A) rises; decreases

B) rises; increases

C) falls; increases

D) falls; decreases

E) rises; does not change

 

42) If the U.S. interest rate rises relative to the interest rate in other countries, then the supply of dollars ________ and the demand for dollars ________.

A) increases; increases

B) increases; decreases

C) decreases; increases

D) decreases; decreases

E) does not change; does not change

43) In the foreign exchange market, an increase in the supply of dollars could be the result of

A) an increase in the U.S. interest rate differential.

B) an increase in the expected future exchange rate.

C) a decrease in the U.S. interest rate differential.

D) an increase in the exchange rate.

E) a decrease in the exchange rate.

 

44) If the interest rate rises in the United States relative to other nations, then in the foreign exchange market the demand for dollars ________ and the supply of dollars ________.

A) increases; increases

B) increases; decreases

C) decreases; increases

D) decreases; decreases

E) does not change; does not change

 

45) Suppose interest rates in foreign countries increase relative to the U.S. interest rate. As a result, there is ________ the demand curve for dollars.

A) an upward movement along

B) a downward movement along

C) a leftward shift of

D) a rightward shift of

E) neither a movement along nor a shift of

46) When the U.S. interest rate ________ relative to foreign interest rates, the supply of dollars ________ and the supply curve of dollars shifts rightward.

A) rises; decreases

B) rises; increases

C) falls; increases

D) falls; decreases

E) rises; does not change

 

47) If the U.S. interest rate differential decreases, then in the foreign exchange market the

A) quantity supplied of dollars decreases.

B) quantity supplied of dollars increases.

C) supply of dollars decreases.

D) supply of dollars increases.

E) demand for dollars increases.

 

48) ________ increases the supply of dollars in the foreign exchange market.

A) An increase in the exchange rate

B) A decrease in the exchange rate

C) A fall in the interest rate in the U.S. relative to the interest rate in other countries

D) A rise in the expected future exchange rate

E) A rise in the interest rate in the U.S. relative to the interest rate in other countries

49) If the U.S. interest rate differential decreases, then in the foreign exchange market the

A) quantity demanded of dollars decreases.

B) quantity demanded of dollars increases.

C) demand for dollars decreases.

D) demand for dollars increases.

E) supply of dollars decreases.

 

50) The ________ the expected future exchange rate, the greater is the expected profit from holding dollars and so the ________.

A) lower; supply curve of dollars shifts rightward

B) higher; demand curve for dollars shifts leftward

C) higher; demand curve for dollars shifts rightward

D) lower; demand curve for dollars shifts leftward

E) higher; supply curve of dollars shifts rightward

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more