What are the three main sets of factors that cause the supply and demand curves in the foreign exchange market to shift?
What will be an ideal response?
The three main sets of factors are changes in the demand for U.S.-produced goods and services and changes in the demand for foreign-produced goods and services; changes in the desire to invest in the United States and changes in the desire to invest in foreign countries; and changes in the expectations of currency traders about the likely future value of the dollar and the likely future value of foreign currencies.
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Evidence of external costs in the production of a product is present if
A) the price of the product is higher than it should be. B) the production cost increases because of an increase in the minimum wage. C) non-buyers and/or non-producers of the product experience a loss for which they are not compensated. D) buyers refuse to purchase the product. E) producers pay all of the costs of producing the good or service.
Which of the following examples reflects monopolistic competition?
a. Mihai subscribes to Link, Inc. because it’s the only cable company in his area. b. Stefan buys a baseball made by Hit, Inc. because there are no good substitutes. c. Elena finds that the supermarket stocks bananas produced by only one company. d. Ana-Maria has difficulty choosing between ten brands of soap.
Which of the following countries had the highest average growth rate for per capita GDP from 2000 to 2009?
A. China. B. Burundi. C. Haiti. D. Canada.
If demand is perfectly elastic, the price elasticity of demand is equal to:
A. 1. B. 0. C. infinity. D. a positive number between 0 and infinity.