Which of the following will not shift the demand for the euro to the right?
A) an increase in interest rates in the European Union
B) expectations among speculators that the price of the euro will rise in the future
C) an increase in incomes in countries that buy goods from the European Union
D) a decrease in the demand for European goods
D
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The oligopolistic situation in which a company's objective is to maximize revenue subject to a minimum profit requirement is usually referred to as
A) the aggregate model. B) the Baumol model. C) the aggressive model. D) the Marshall model.
A fall in investor confidence causes the equilibrium level of output to fall
What will be an ideal response?
Consider the following statements:
a. Car owners purchase more gasoline from a gas station that sells gasoline at a lower price than other rival gas stations in the area.
b. Banks do not take steps to increase security since they believe it is less costly to allow some bank robberies than to install expensive security monitoring equipment.
c. Firms produce more of a particular DVD when its selling price rises.
Which of the above statements demonstrates that economic agents respond to incentives?
A) a only
B) b only
C) c only
D) a and b
E) a, b, and c
As more of a good, such as television sets, is produced, the opportunity costs of producing it increases. This most likely occurs because
A. resources are not equally well suited to producing all goods, and as more of a good is produced, it is necessary to use resources less well suited to the production of that good. B. consumers would be willing to pay higher prices for the good as more of the good is produced. C. as more of a good is produced, the quality of that good declines, and therefore the costs of production increase. D. as more of a good is produced, the inputs used to produce that good will increase in price.