Suppose you are traveling from the United States to Djibouti on vacation. You would be better off on your vacation if:
a. exchange rates did not change after you bought Djiboutian francs.
b. you had purchased Djiboutian francs in Djibouti and not in New York.
c. the Djiboutian franc became more powerful with respect to the U.S. dollar.
d. the exchange rate increased.
e. the exchange rate decreased.
d
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The price elasticity of demand for electricity is -0.40. By how much must the price of the electricity decrease in order for sales to rise by 12%?
a. 3%. b. 4.8%. c. 12.4%. d. 30%.
This factor contributes to the winner's curse
a. your estimate of the value of the object was not the most optimistic b. your bid was not the highest c. there were many other bidders that you beat out d. you did not shade your bid enough
Suppose that the United States can make 15 cars or 20 bottles of wine with one year's worth of labor. France can make 10 cars or 18 bottles of wine with one year's worth of labor. From these numbers, we can conclude that
a. the United States has a comparative advantage in the production of cars. b. France has a comparative advantage in the production of wine. c. the United States has an absolute advantage in the production of cars. d. All of the above are correct.
As real interest rates fall, firms desire to
a. buy more new equipment and buildings. This response helps explain why the supply of loanable funds is upward sloping. b. buy more new equipment and buildings. This response helps explain why the demand for loanable funds is downward sloping. c. buy less new equipment and buildings. This response helps explain why the supply of loanable funds is upward sloping. d. buy less new equipment and buildings. This response helps explain why the demand for loanable funds is downward sloping.