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Increase appreciating the Canadian d. Outflow
Increase dollar, and decreasing its
Decrease exports because they are now more expensive. (51%) 3. With an increase in investment demand in the U.S. the real interest rate
real rises. In this situation, the most likely change in the capital stock in the U.S.
and in the international value of the dollar would be which of the following?
Capital Stock in
of the Dollar
More real investment would result in an
increase in real capital stock in the U.S.
The increase in the real interest rate would
increase financial investment demand
for the dollar as it appreciates.
e. No change
(64%) 4. Which of the following would cause the U.S. dollar to
increase in value compared to the Japanese yen?
a. An increase in the money supply in the...
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