When the U.S. dollar depreciates relative to foreign currencies this means that ______.
a. the value of the U.S. dollar increases
b. foreign currencies depreciate relative to the U.S. dollar
c. a dollar can buy fewer units of foreign currency than before
d. a dollar can buy more units of foreign currency than before
c. a dollar can buy fewer units of foreign currency than before
You might also like to view...
Refer to the figure above. If the supply curve for flash drives shifts from S1 to S2, with no change in the demand curve, the new competitive equilibrium price is:
A) $3. B) $4. C) $5. D) $7.
Mean reversion refers to the tendency for
A) futures prices to revert to the prices of the underlying securities. B) the long-run mean return on stocks to equal the long-run mean return on bonds. C) stocks with high returns today to experience low returns in the future and for stocks with low returns today to experience high returns in the future. D) financial analysts whose stock picks have earned above-normal returns in the past to be unable to pick stocks that will perform as well in the future.
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real GDP and current international transactions in the context of the Three-Sector-Model?
a. Real GDP rises, and current international transactions become more negative (or less positive). b. Real GDP and current international transactions remain the same. c. There is not enough information to determine what happens to these two macroeconomic variables. d. Real GDP falls, and current international transactions become more negative (or less positive). e. Real GDP rises, and current international transactions remain the same.
Because of producer?producer rivalry, the price will tend to:
A. rise up to the maximum price the consumers are willing and able to pay. B. be the same as the competitive price. C. be driven to a lower price. D. be the same as the monopoly price.