A fall in interest rates is likely to ?

Related Mcqs:

1. Under floating exchange rates, expectations of higher interest rates are likely to cause an ____ of the exchange rate?

   A. depreciation
   B. appreciation
   C. fall
   D. devaluation

2. Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?

   XA. wages and rents should fall in Country A
   B. wages and rents should rise in Country A
   C. wages should rise and rents should fall in Country A
   D. wages should fall and rents should raise in Country A

3. 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

4. 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

5. If interest rates rise then costs are likely to _______ and demand is likely to _________?

   A. rise, fall
   B. rise; rise
   C. fall; fall
   D. fall; rise

6. Lower interest rates are likely to ?

   A. Decrease consumption
   B. increase cost of borrowing
   C. Encourage saving
   D. Increase spending

7. If VAT rates rise, then costs are likely to ___ and demand is likely to ____?

   A. rise; rise
   B. rise; fall
   C. fall; fall
   D. fall; rise

8. In the events of an increase in the international price of oil that encouraged the central bank to accept lower real interest rates, inflation would most likely ?

   A. fall
   B. increase
   C. remain the same
   D. fluctuates

9. 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

10. 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