A decrease in Americans' preference for foreign goods will lead to the following in the foreign exchange market:
A. an increase in the demand for dollars.
B. a depreciation of the dollar relative to foreign currencies.
C. a movement down the demand curve for dollars.
D. a decrease in the supply of dollars.
Answer: D
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Colleges offer tuition scholarships even when they are running budget deficits because colleges
A) are public service institutions. B) can often earn additional net income by offering tuition scholarships. C) hope to receive contributions later from the recipients of scholarships. D) set tuition levels and establish scholarship policies without considering the monetary advantages.
The interest rate compensates
a. bankers for their time spent on paperwork b. borrowers for their increased consumption today c. savers for consumption forgone today d. consumers for more consumption today e. the Fed for its efforts to control the money supply
The services of a husband or wife as a homemaker and cash gains from a lottery are included in the calculation of gross domestic product
a. True b. False Indicate whether the statement is true or false
Suppose a tax of $0.10 per unit on a good creates a deadweight loss of $100 . If the tax is increased to $0.25 per unit, the deadweight loss from the new tax would be
a. $200. b. $250. c. $475. d. $625.