Which of the following events would increase U.S. demand for Canadian dollars?
a. The Canadian government lowers tariffs on imports from the United States.
b. A Canadian oil company discovers new oil reserves in the seas of Canada.
c. A U.S. oil company discovers new oil reserves off the coast of Florida.
d. The U.S. government increases tariffs on imports from Canada.
b. A Canadian oil company discovers new oil reserves in the seas of Canada.
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A production possibilities curve shows the combinations of products which can be produced in an economy which is fully employing and efficiently using its productive resources
Indicate whether the statement is true or false
Here is how an open market purchase works: The Fed __________ government securities to (from) a commercial bank, which raises the bank's deposits at the __________ and increases the bank's __________
A) sells; Fed; reserves B) buys; Fed; reserves C) buys; Treasury; discount loans D) sells; Treasury; required reserve ratio E) buys; Fed; liabilities
Pollution is an externality, this means
A. the free market allows households and firms to consume a minimal amount of clean air. B. it is in the public interest to reduce pollution levels to zero. C. individuals and firms consume “free” air wastefully. D. the pricing system sets clean air at a high price.
In the traditional Keynesian model, if the government raises taxes, then
A. both consumption and real Gross Domestic Product (GDP) will increase. B. both consumption and real Gross Domestic Product (GDP) will decrease. C. consumption will increase but Gross Domestic Product (GDP) will decrease. D. consumption will decrease but Gross Domestic Product (GDP) will increase.