Suppose a new EU member begins substituting its imports from non-EU members to other EU members. This is an example of
A) trade diversion.
B) trade deflection.
C) free trade.
D) trade detection.
A
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The figure above shows the demand and supply of dollars in the foreign exchange market. The equilibrium in the market occurs at a price of ________ Brazilian reals per dollar and a quantity of ________ billion dollars
A) 2.0; 100 B) 2.4; 120 C) 1.6; 100 D) 100; 2.0
If the demand for the yen increases relative to the dollar, which of the following would occur?
A) The dollar will depreciate. B) The demand for the dollar will increase. C) The yen will depreciate. D) The dollar will appreciate.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1. B. P4 and Y2. C. P5 and Y1. D. P5 and Y2.
The marginal propensity to import (mpi), where M = imports, is defined as
A) M * Y. B) ?M/?Y. C) M - Y. D) ?M * ?Y.