Suppose that rising U.S income leads to higher sales and profits in the United States This would likely result in ?

Related Mcqs:

When the price of foreign currency (i.e the exchange rate) is below the equilibrium level ?

A. an excess demand for that currency exists in the foreign exchange market B. an excess supply of the currency exists in the foreign exchange market C. the demand for foreign exchange shifts outward to the right D. the demand for foreign exchange shifts backward to the left...

The exchange value of the U.S dollar is primarily determined by ?

A. the rate of inflation in the United States B. the number of dollars printed by the U.S government C. the international demand and supply for dollars D. the monetary value of gold held at Fort Knox, Kentucky...

Under a system of floating exchange rates relatively low productivity and high inflation rates in the United States results in a (an) ?

A. increase in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar B. increase in the demand for foreign currency an increase in the supply of foreign currency and a appreciation in the dollar C. decrease in the demand for foreign currency a decrease in … Under a system of floating exchange rates relatively low productivity and high inflation rates in the United States results in a (an) ?Read More...

Suppose Canada and Switzerland were the only two countries in the world There exists an excess supply of Swiss francs on the foreign exchange market This suggests that ?

A. the Canadian current account balance is in surplus B. the Swiss current account balance is in deficit C. the Canadian current account balance is in equilibrium D. the Swiss current account balance is in equilibrium...

For the United States suppose the annual interest rate on government securities equals 12 percent while the annual inflation rate equals 8 percent For Japan the annual interest rate on government securities equals 10 percent while the annual inflation rate equals 5 percent the above variables would cause investment funds to flow from ?

A. The United States to Japan causing the dollar to depreciate B. The United States to Japan causing the dollar to appreciate C. The Japan to United States, causing the dollar to depreciate D. The Japan to United States, causing the dollar to appreciate...