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cause an increase in the demand for US dollars




Which of the following would cause an increase in the demand for US dollars;a) an economic boom in the US;b) an economic boom in Europe;c) increased vacations in Europe by Americans;d) a recession in Europe;e) lower interest rates in the US;A recession in the US will tend to cause a recession in other countries because as US GDP falls, US;a) tariffs will automatically rise;b) exports will rise;c) imports will fall;d) exports will fall;e) interest rates will rise;The main problem with flexible exchange rates is that;a) they are inflationary;b) they have reduced the amount of international trade;c) the government loses more control over the economy;d) exchange controls become necessary;e) importers and exporters face risks due to unpredictable exchange rate changes


Paper#26171 | Written in 18-Jul-2015

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