Suppose the real exchange rate is such that the market for foreign-currency exchange has a surplus. This surplus will lead to
a. an appreciation of the dollar, an increase in U.S. net exports, and so an increase in the quantity of dollars demanded in the foreign exchange market.
b. an appreciation of the dollar, a decrease in U.S. net exports, and so a decrease in the quantity of dollars demanded in the foreign exchange market.
c. a depreciation of the dollar, an increase in U.S. net exports, and so an increase in the quantity of dollars demanded in the foreign exchange market.
d. a depreciation of the dollar, a decrease in U.S. net exports, and so a decrease in the quantity of dollars demanded in the foreign exchange market.
c
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A black market is also known as a(n) ________ economy
A) open B) closed C) underground D) emerging
A monopolist faces a downward-sloping demand curve because:
A. the demand for its product is inelastic. B. the industry demand curve is horizontal. C. resource prices increase as the monopolist expands output. D. the entire market demand curve is the monopolist's demand curve.
Monetary policy is not the only type of policy that affects interest rates.
Answer the following statement true (T) or false (F)
Macro equilibrium is established at which price level, given AD1 and AS1 in Figure 8.3?
A. P1. B. P2. C. P3. D. P4.