--%>
Assignment Help - homework help

U.S. exports create a demand for foreign currencies

True or false? “U.S. exports create a demand for foreign currencies; foreign imports of U.S. goods generate supplies of foreign currencies.”  Explain.

E

Expert

Verified

The first part of this statement is incorrect.  U.S. exports create a domestic supply of foreign currencies, not a domestic demand for them.  The second part of the statement is accurate. The foreign demand for dollars (from US. exports) generates a supply of foreign currencies to the United States.

   Related Questions in Business Economics

  • Q : Explain the foundation of economics

    Explain the foundation of economics where society’s material wants are unlimited?

    		•
  • Q : How will the system accommodate change

    How will the system accommodate change?

    		•
  • Q : Common factors influencing capital

    Write down the common factors influencing capital structure?

    		•
  • Q : Illustrate major economic flows that

    Illustrate major economic flows that link U.S. with nations.  Provide an example to illustrate each flow.  Explain the relationship between the top and bottom flows.

    		•
  • Q : Real exchange rate Question: To

    Question: To determine the real exchange rate, what two pieces of information do you need in addition to the nominal exchange rate? Answer:

    Q : Exploit consumers in highly competitive

    This is difficult for firms within highly competitive markets to exploit consumers since: (i) consumer advocates organize boycotts that generate bad publicity. (ii) market pressures force fair distributions of products. (iii) the government sets price

    		•
  • Q : Self-interested motivation to underpin

    Adam Smith’s perception which self-interested motives underpin even charitable activities through apparently selfless people appeared originally into his primary major book that was entitled: (1) Theory of Moral Sentiments [1755]. (2) Leviathan

    		•
  • Q : Introduction of the term Cost of

    Give a brief introduction of the term Cost of retained earnings?

    		•
  • Q : Circular flow model of the private

    I have a problem in economics on Circular flow model of the private sector. Please help me in the following question. The simple circular flow model of private sector doesn’t comprise: (i) Firms. (ii) Product markets. (iii) Government agencies.

    		•
  • Q : Assertion for the levying of a tax on

    Use the circular flow model to confirm this assertion for the levying of a tax on air polluters?

    		•