Question

1. If the supply of dollars in the market for foreign-currency exchange shifts left, then the exchange rate

1. rises and the quantity of dollars exchanged falls.
2. rises and the quantity of dollars exchanged does not change.
3. rises and the quantity of dollars exchanged rises.
4. falls and the quantity of dollars exchanged does not change.

2. If a government has a budget surplus, then public saving

1. is positive and increases national saving.
2. is positive but decreases national saving.
3. is negative and decreases national saving.
4. is negative but increases national saving.

3. When a government increases its budget deficit, then that country’s

1. Supply of loanable funds shifts right.
2. Supply of loanable funds shifts left.
3. demand for loanable funds shifts right.
4. demand for loanable funds shifts left.

Answer 1

1.if the supply of dollor in market for foreign currency shifts leftward there is decrease in supplysand decrease in demand this leads to increase exchange rate.

So there will be rise in and quantity of exchange falls.

2.if government has surplus budget then public saving will be positive and will rise and also helps to increase national savings.

If surplus the government tries to reduce collecting from public so it increases savings

3when a government increases it's budget deficit then the country loanable supply shifts left