Use the following to answer question 37: Figure: Change in the Demand for U.S. D

Question

Use the following to answer question 37: Figure: Change in the Demand for U.S. Dollars Euros per U.S. dollar Supply of U.S. dollars X2 X. D2 Demand for U.S. dollars D1 Quantity of U.S. dollars 37. Refer to the information in the figure Change in the Demand for U.S. Dollars.. The change from DI to D2 will occur, all other things being equal, if: A) interest rates rise in Europe. B) interest rates rise in the United States. C) interest rates in the United States and Europe both rise by the same amount. D) U.S. consumers buy m ore goods and services from Europe.

Explanation / Answer

Ans)

37.
B) interest rate rise in the United States
As the demand for the dollars increases the real interest rates in the United States will rise.

38)
C) a farmer's purchase of a new tractor made in Iowa by a German company.
Buying financial assets, purchase of used goods are not a part of the GDP.

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.