Relatively low real interest rates in the United States tend to ?

Related Mcqs:

1. Relatively high real interest rates in the United States tend to ?

   A. decrease the foreign demand for dollars causing the dollar to depreciate
   B. decrease the foreign demand for dollars causing the dollar to appreciate
   C. increase the foreign demand for dollars causing the dollar to depreciate
   D. increase the foreign demand for dollars causing the dollar to appreciate

2. Under a system of floating exchange rates relatively low productivity and high inflation rates in the United States results in a (an) ?

   A. increase in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar
   B. increase in the demand for foreign currency an increase in the supply of foreign currency and a appreciation in the dollar
   C. decrease in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar
   D. decrease in the demand for foreign currency and increase in the supply of foreign currency and a appreciation in the dollar

3. Under a system of floating exchange rates relatively high productivity and low inflation rates in the United States results in a (an) ?

   A. increase in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar
   B. increase in the demand for foreign currency an increase in the supply of foreign currency and a appreciation in the dollar
   C. decrease in the demand for foreign currency a decrease in the supply of foreign currency and a depreciation in the dollar
   D. decrease in the demand for foreign currency an increase in the supply of foreign currency and a appreciation in the dollar

4. If a nation’s interest rates are relatively low compared to those of other countries. then the exchange value of its currency will tend to ?

   A. not be affected
   B. appreciate
   C. depreciate
   D. fluctuate more than if interest rates were high

5. If a nation’s interest rates are relatively low compared to those of other countries then the exchange value of its currency will tend to ?

   A. depreciate under a system of fixed exchange rates
   B. depreciate under a system of floating exchange rates
   C. appreciate under a system of floating exchange rates
   D. appreciate under a system of floating fixed rates

6. _______ states that as real GNP per capita rises, people demand relatively more social goods and relatively fewer private goods?

   A. incomes policy
   B. Moral hazard
   C. Wagner’s law
   D. Fiscal policy

7. Assume identical interest rates on comparable securities in the United States and foreign countries. Suppose investors anticipate that in the future the U.S dollar will depreciate against foreign currencies. investment funds would tend to ?

   A. flow from the United States to foreign countries
   B. flow from foreign countries to the United States
   C. remain totally in foreign countries
   D. remain totally in the United States

8. The motive for holding money that encourages investors to hold bonds when interest rates are low, with the hope of selling them when interest rates are high, is the ?

   A. Transactions motive
   B. precautionary motive
   C. profit motive
   D. speculation motive

9. The Heckscher-Ohlin theorem states that a country will have comparative advantage in the good whose production in relatively intensive in the with which the country is relatively abundant ?

   A. tastes
   B. technology
   C. factor/resource
   D. opportunity cost

10. Investor engage in _____ when they move funds into foreign currencies in order to take advantage to interest rates abroad that are higher than domestic interest rates ?

    A. currency arbitrage
    B. interest arbitrage
    C. short positions
    D. long positions