Question

URGENT! 51-55 Each Question has 4-6 parts, please answer all of them. - If the interest...

URGENT! 51-55

Each Question has 4-6 parts, please answer all of them.

-

If the interest rate in the U.S. rises relative to the interest rate in other nations, then …

… the demand for dollars will shift to the left and the dollar will appreciate.

… the demand for dollars will shift to the right and the dollar will depreciate.

… the demand for dollars will shift to the left and the dollar will depreciate.

… the demand for dollars will shift to the right and the dollar will appreciate.

-

If the inflation rate in the U.S. rises relative to the inflation rate in other nations, then …

… the demand for dollars will shift to the left and the dollar will depreciate.

… the demand for dollars will shift to the right and the dollar will depreciate.

… the demand for dollars will shift to the left and the dollar will appreciate.

… the demand for dollars will shift to the right and the dollar will appreciate.

-

If the growth rate in the U.S. rises relative to the growth rate in other nations, then …

… the demand for dollars will shift to the left and the dollar will depreciate.

… the demand for dollars will shift to the left and the dollar will appreciate.

… the demand for dollars will shift to the right and the dollar will depreciate.

… the demand for dollars will shift to the right and the dollar will appreciate.

-

If foreign tourism to the U.S. rises, then …

… the demand for dollars will shift to the left and the dollar will appreciate.

… the demand for dollars will shift to the right and the dollar will depreciate.

… the demand for dollars will shift to the left and the dollar will depreciate.

… the demand for dollars will shift to the right and the dollar will appreciate.

-

If the Federal Reserve buys Treasury securities, then …

… the money supply decreases.

… the money supply may increase or decrease.

… the money supply is not affected.

… the money supply increases.

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Homework Answers

Answer #1

Sol :

1. Option (D) is correct

[ the demand for the dollars will shift to the right and dollars will appreciates]

Because of the following points :

  • When interest rates of the U.S rises in relation to other nation , people of other nation tends to increase the investment in U.S.
  • Investment in U.S increases , so demand for the dollar . When demand for dollar increases , demand curve will shift to the right and dollar appreciates in the market.

NOTE : AS PER GUIDLINES , WE (EXPERTS) HAVE TO DO ONLY FIRST QUESTION OUT OF THE SEVERAL QUESTIONS. SO KINDLY POST THE OTHER QUESTION IN SEPARATE POSTS .

** PLEASE UPVOTE IF THIS ANSWER IS HELPFUL **

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