If the dollar price of a foreign currency increases, there will be a(n)
a. rightward movement along the supply of foreign exchange curve
b. leftward movement along the supply of foreign exchange curve
c. leftward shift of the supply of foreign exchange curve
d. rightward shift of the supply of foreign exchange curve
e. tendency for the supply of foreign exchange curve to become flatter
A
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The primary reason why a monopoly can make a long-run economic profit is the existence of
A) barriers to entry. B) inelastic demand. C) price discrimination. D) many buyers.
If a bottle of fine French wine costs US$250 in the U.S., 2500 rand in South Africa, there are no transaction costs, and the exchange rate is 5 rand/US$, then
A) there is an arbitrage opportunity by buying the wine in the U.S., and selling it in South Africa and the price in South Africa will drop. B) there is an arbitrage opportunity by buying the wine in South Africa., and selling it in the U.S. and the price in the U.S. will drop. C) here is an arbitrage opportunity by buying the wine in South Africa., and selling it in the U.S. and the price in the U.S. will rise. D) there is no arbitrage opportunity.
You deposit $10,000 in a savings account today. If the interest rate is 3%, what is the value in 20 years?
What will be an ideal response?
If Best Paints and Paint with Us are paint suppliers in tacit collusion and Best Paints launches a new advertising campaign that states that it will meet any competitor's price on comparable paint, Best Paints might be tacitly signaling to Paint with Us that they are willing to ________.
A) raise their price B) lower their price C) maintain current the price D) cut price is exactly half