In the above figure, which of the following is a possible explanation for the reduction in the equilibrium value of the European euro from P2 to P1?
A) an increase in demand for French automobiles
B) the European central bank's decision to buy euros on the world market
C) a decrease in the price of California wines, assuming that French wines and California wines are substitutes
D) an increase in the price of California wines, assuming that French wines and California wine are substitutes
C
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What is the equilibrium quantity in this market?
a. 4 units b. 8 units c. 12 units d. 16 units
A non-policy reason for the reduction in the natural rate of unemployment is the
a. expansionary nature of monetary policy. b. aging of the U.S. labor force. c. decline in interest rates. d. growing federal budget surplus.
Given the strict quantity theory of money, if the quantity of money were decreased by 50 percent, prices would
a. fall by 50 percent. b. rise by 50 percent. c. increase by 100 percent. d. decrease by 100 percent.
Returns to scale measures how much distance there is between the ________ when there is a uniform increase in the inputs
Fill in the blank(s) with the appropriate word(s).