Suppose that last year $1 U.S. exchanged for 1.2 euros. If this year $1 exchanges for 1.1 euros, then we can conclude that
A. the dollar is stronger this year than it was last year and this will cause the United States' short-run aggregate supply (SRAS) curve to shift to the left.
B. the dollar is weaker this year than it was last year and this will cause the United States' short-run aggregate supply (SRAS) to shift to the right.
C. the dollar is weaker this year than it was last year and this will cause the United States' short-run aggregate supply (SRAS) curve to shift to the left.
D. the dollar is stronger this year than it was last year and this will cause the United States' short-run aggregate supply (SRAS) curve to shift to the right.
Answer: C
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Legal ceilings on the rate of interest charged to individuals
A) guarantee credit is allocated according to need rather than ability to pay. B) make it easier for people with poor credit ratings to obtain loans. C) reduce the probability corporations will obtain scarce credit by bidding funds away from consumers. D) accomplish all of the above. E) accomplish none of the above.
A ________ curve shows the marginal cost of producing one more unit of a good or service
A) marginal benefit B) production possibilities C) supply D) demand
The moral hazard problem arises primarily because of:
The moral hazard problem arises primarily because of: A. Individual bargaining B. Negative externalities C. Asymmetric information D. Poorly defined property rights
XYZ Computer Company has a monopoly on the sale of a specialized color printer. If it sells two of these printers its total revenue is $1,000, and if it sells three color printers its total revenue is $1,400. The marginal revenue of the third color printer sold is
A. $200. B. $300. C. $400. D. $1,300.