In the open-economy macroeconomic model, if investment demand decreases, then
a. the supply of dollars in the market for foreign-currency exchange shifts left.
b. the supply of dollars in the market for foreign-currency exchange shifts right.
c. the demand for dollars in the market for foreign-currency exchange shifts left.
d. the demand for dollars in the market for foreign-currency exchange shifts right.
b
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Rate of return regulation is equivalent to
A) average cost pricing rule. B) marginal cost pricing rule. C) maximizing consumer surplus. D) maximizing producer surplus.
The value of tax land increases as a result of site value taxation only when _____
a. all governments employ it b. surrounding governments do not employ it c. the supply of land is inelastic d. the demand for housing is strong
Suppose an increase in the demand for labor results in an increase of $4 per hour in the equilibrium wage. How does the increase in the demand for labor affect the value of the marginal product of labor (VMPL)?
a. The VMPL increases by less than $4. b. The VMPL increases by $4. c. The VMPL increases by more than $4. d. The VMPL decreases by $4.
When the supply of blueberries increases while the demand for blueberries also increases, the equilibrium ________ of blueberries will definitely ________, ceteris paribus.
A. price; increase B. price; decrease C. quantity; increase D. quantity; decrease