An increase in U.S. interest rates can be expected to: adversely affect U.S. exp

Question

An increase in U.S. interest rates can be expected to: adversely affect U.S. exporters. encourage investment spending by U.S. firms. lower the foreign exchange value of the dollar. cause a net outflow of foreign capital from the United States. The purchase of a British Rolls-Royce by a U.S. citizen would result in all of the following except a(n): supply of dollars to England. sale of dollars and the purchase of pounds sterling. increase in imports to the United States. gain of foreign exchange for the United States. Japan and the United States are engaged in a system of flexible exchange rates. If more people in the United States decide to purchase Japanese cars, what effect will this have on the graph shown below which depicts the market for yen? The price of yen will decrease. The price of yen will decrease. The supply of yen will increase. The supply of yen will decrease.

Explanation / Answer

3-d 4-b 5-a

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