A exchange rate is: Select one: not influenced by market forces or government in

Question

A exchange rate is: Select one: not influenced by market forces or government intervention. one influenced by market forces, subject to government intervention to keep it within a certain range. one determine primarily by central banks. one determine primarily by market forces Which item is part of the capital account? Select one: currency held by the government movements of bank deposits to the United States net income on capital abroad the balance of trade If the Federal Reserve made the decision to increase the money supply in the United States, this would lead to Select one: an appreciation of the U.S. dollar relative to other currencies a depreciation of the U.S. dollar relative to other currencies an increase in the exchange rage value of the dollar an increase in the demand for U.S. dollars According to the supply and demand framework in the text, an increase in import trade tends to domestic production of a good. Select one: hold constant have an indeterminate effect on

Explanation / Answer

1. d. one determined by market forces.

2. b. movements of bank deposits to United States.

3. b. a depreciation of the U. S dollar relative to other countries.

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