At what price will there be a balance of supply and demand in the market for foreign exchange?
At what price will there be a balance of supply and demand in the market for foreign exchange?
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Related questions
If the U.S. imposes an import quota on clothing, then the
| Ā | a. |
demand for dollars in the market for foreign-currency exchange shifts left. |
| Ā | b. |
demand for dollars in the market for foreign-currency exchange shifts right. |
| Ā | c. |
supply of dollars in the market for foreign-currency exchange shifts right. |
| Ā | d. |
supply of dollars in the market for foreign-currency exchange shifts left. |
1) Suppose inflation in Mexico goes from 4% to 3% over the year. What will be the immediate impact on Mexico's balance of trade?
| Ā | A |
Ā increase |
| Ā | B |
decrease |
| Ā | C |
remain constant |
| Ā | D |
cannot be determined |
reasoning?
2) If Great Britain imports more than it exports, then
| Ā | A |
the supply of pounds is likely to exceed the demand for pounds in the foreign exchange market. |
| Ā | B |
the demand for pounds is likely to exceed the supply for pounds in the foreign exchange market. |
| Ā | C |
the pound will likely appreciate against other major currencies in the foreign exchange market. |
| Ā | D |
none of the above |
