why do foreigners export goods and services to buyers in the United States?
What will be an ideal response?
they want to acquire dollars so they can purchase things from Americans
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When you see a mansion and think to yourself that it must be worth a million dollars, you are using money to perform which function?
A) medium of exchange B) unit of account C) store of value D) means of payment E) method of avoiding barter
A borrower who takes out a loan usually has better information about the potential returns and risk of the investment projects he plans to undertake than does the lender. This inequality of information is called
A) moral hazard. B) asymmetric information. C) noncollateralized risk. D) adverse selection.
Refer to the above table. If the price is $3, the perfectly competitive firm should produce
A) 102 units. B) 105 units. C) 103 units. D) 104 units.
An appreciation of the U.S. dollar relative to the Japanese yen causes
A) a lower dollar-price of Japanese goods which induces the U.S. to increase their purchasing of Japanese goods. B) the quantity demanded of U.S. dollars to increase because the Japanese want to buy more U.S. goods. C) the Japanese to buy more U.S. goods, causing the dollars to appreciate further. D) the U.S. to buy less Japanese goods, causing the U.S. to depreciate.