The exchange rate of the dollar relative to other currencies is determined by market forces. When equilibrium is present in the exchange rate market,
A) the purchases of Americans from foreigners will be equal to the sales of Americans to foreigners.
B) imports from foreigners will create jobs in other countries but employment in the United States will decline by an equal amount.
C) the gains of Americans from international trade will be just equal to the gains of foreigners from the trade.
D) Americans will gain from the international trade only if foreigners lose an equal amount.
A) the purchases of Americans from foreigners will be equal to the sales of Americans to foreigners.
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A) Dividend B) Principal C) Maturity D) Time value of money
Total revenue earned from the sale of a good is:
A) the price at which the good is sold. B) the difference between price and cost of production of the good. C) the product of price and quantity of the good sold in the market. D) the product of cost of production and quantity of the good sold in the market.
If a Mexican pension fund decides to purchase U.S. government bonds, what is the effect in the foreign exchange market?
a. It will increase demand for U.S. dollars. b. It will decrease demand for U.S. dollars. c. It will increase supply of U.S. dollars. d. It will decrease supply of U.S. dollars.
Which of the following students would be most likely to drop out of college before completing their degree? Select one:
a. a senior physics major with a solid B average b. a junior secondary education major who has just read about the substantial improvement in the job opportunities available for teachers with a college degree. c. an outstandingbaseball player in his junior year that just received a $500,000 offer from a professional team d. a junior economics major who wants to attend law school