An increase in the real interest rate on US financial assets basically imply a higher financial cost of borrowings of these assets which would consequently reduce the demand for US assets among foreign investors or borrowers.
As the real interest rate on US assets goes up,the foreign investor have to pay more as interest on any borrowing of the US assets in US dollars.Therefore,the periodic interest payments in terms of US dollars also increases for the foreign or international financial investors which will eventually reduce the demand for US dollars in the foreign exchange market for US dollars.
As a result of such occurrence,the demand curve for US dollars would shift leftward or downward thereby reducing the currency value of US dollars relative to other foreign or international currencies.

6 0

3 years ago

Suppose there are 100 million in the labor force, and 6 million unemployed people. During the next month, 200,000 people lose th

laiz [17]

Answer:

Results are below.

Explanation:

<u>First, we need to calculate the currently employed people and the unemployment rate:</u>

<u></u>

Employed people= 100,000,000 - 6,000,000= 94,000,000

Unemployment rate= unemployed people / labor force

Unemployment rate= 6,000,000 / 100,000,000

Unemployment rate= 0.06= 6%

<u>Now, the newly employed people and the unemployment rate:</u>

<u></u>

Employed people= 94,000,000 + 300,000 - 200,000

Employed people= 94,100,000

Unemployment rate= 5,900,000 / 100,000,000

Unemployment rate= 0.059 = 5.9%

6 0

3 years ago

.....................................hi

sp2606 [1]

Answer:

Hi!! I hope you are great. Thanks for the pts...

8 0

3 years ago

An automobile insurance policy typically includes: a. collision, comprehensive, liability, and personal injury protection b. col

ladessa [460]

Answer:

b. collision, comprehensive, liability, personal injury protection

Explanation:

automobile insurance policy can be regarded as a contact that exist between someone and the insurance company, which provide protection from financial loss Incas there is arises of theft, accident on ones car. It should be noted that An automobile insurance policy typically includes collision, comprehensive, liability, personal injury protection

4 0

3 years ago