If the demand for dollars in the market for foreign-currency exchange shifts left, then the exchange rate
a. rises and the quantity of dollars exchanged rises.
b. rises and the quantity of dollars exchanged does not change.
c. falls and the quantity of dollars exchanged falls.
d. falls and the quantity of dollars exchanged does not change.
d
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Use the following table to answer the question below. Dave's Production Possibilities SchedulePounds of Green BeansPounds of Corn0160201204080604080 0Dave's opportunity cost of producing 1 pound of corn is ________ pound(s) of green beans.
A. 1 B. 4 C. 1/2 D. 2
The marginal cost to society of reducing pollution increases with the increased use of pollution abatement because
A) of the diminishing marginal utility of abatement. B) of the reduced demand for abatement. C) of the diminishing returns from abatement. D) of the high cost of abatement.
Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and current international transactions balance in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete
equilibrium. a. The real risk-free interest rate remains the same and current international transactions balance becomes more negative (or less positive). b. The real risk-free interest rate falls and current international transactions balance becomes more positive (or less positive). c. The real risk-free interest rate and current international transactions balance remain the same. d. The real risk-free interest rate rises and current international transactions balance remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
The article on China's $4 trillion of reserves indicates that the yuan's depreciation is due to
A. Intervention of the U.S. government to cause the dollar to depreciate. B. Intervention of the Chinese government to purchase dollars to suppress the yuan. C. Intervention of the Chinese government into the exchange markets to purchase yuan. D. Intervention on the part of the U.S. government to devalue the yuan.