The Japanese demand curve for dollars is downward-sloping because a:

The Japanese demand curve for dollars is downward-sloping because a:
 a. higher number of yen per dollar means U.S. goods are cheaper in Japan.
  b. lower number of yen per dollar means U.S. goods are cheaper in Japan.
  c. lower number of yen per dollar means U.S. goods are more expensive in Japan.
  d. lower number of yen per dollar means U.S. goods are less expensive in the U.S.

QUESTION 2

A downward movement along the investment demand curve would be caused by a(n):
 a. increase in the expected rate of return on investment caused by an increase in business confidence.
  b. decrease in the expected rate of return on investment caused by a decrease in business confidence.
  c. increase in the rate of interest.
  d. decrease in the rate of interest.

QUESTION 3

Which of the following is a valid concern about federal budget deficits?
 a. The welfare of future generations will be directly related to the per-capita size of the national debt that they inherit.
  b. Growth of the national debt will eventually lead to the bankruptcy of the government.
  c. When the debt comes due, future generations may be unable to pay it off.
  d. If the increases in the national debt reduce private expenditures on capital formation, aggregate demand is reduced.

QUESTION 4

Flexible, or floating, exchange rate is determined by the:
 a. World Bank. b. forces of supply and demand.
  c. price of gold. d. Federal Reserve.

QUESTION 5

If the interest rate rises, then firms' investment spending:
 a. falls.
  b. also rises.
  c. remains unchanged
  d. reacts unpredictably.

QUESTION 6

Currently, how much of the U.S. national debt is owed to foreigners?
 a. About 2.5 percent.
  b. About 25 percent.
  c. About 30 percent.
  d. About 59 percent.