The exchange rate is
a. the price of foreign exchange determined by the interaction of supply and demand
b. an interest rate determined by the interaction of supply and demand
c. fixed by each government separately
d. always fixed for any two currencies by the two nations involved, regardless of any agreements made with other nations
e. fixed by GATT
A
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Use the following diagrams for the U.S. economy to answer the next question.
Which of the diagrams best portrays the effects of an increase in resource productivity?
A. Graph (1) B. Graph (2) C. Graph (3) D. Graph (4)
The government can overcome the inefficiency created by a good with an external benefit by using
A) public provision. B) marketable permits. C) taxes. D) emission charges. E) None of the above answers is correct.
If the dollars per peso exchange rate fell,
a. few firms would want to relocate to Mexico b. the demand for pesos would fall c. more Americans would travel to Mexico d. Americans would buy fewer Mexican goods e. the demand for pesos curve would shift inward
When a country allows international trade and becomes an importer of a good,
a. domestic producers of the good become better off. b. domestic consumers of the good become better off. c. the gains of the winners fall short of the losses of the losers. d. All of the above are correct.