Ceteris paribus, with a fixed exchange rate, if Americans decide to buy more Japanese-made television sets, this causes a market ________ of Japanese currency and creates a balance-of-payments ________ for the United States.
A. shortage; surplus
B. surplus; surplus
C. surplus; deficit
D. shortage; deficit
Answer: D
You might also like to view...
To change the federal funds rate, the Fed
A) coordinates with banks on establishing the new rate. B) tells banks how much to charge. C) uses open market operations to change the quantity of reserves. D) changes the income tax rate on interest income. E) increases or removes money from the stock market.
Landowners whose property is seized through eminent domain share in the gains that result from the taking of their property
Indicate whether the statement is true or false
According to academic research, securities prices reflect new information
A) within a few minutes. B) within a day. C) within a week. D) within a month.
A firm uses two inputs, labor (L) and capital (K) in the production of umbrellas. It can invest $50,000 in the purchase of the two inputs annually. The firm hires 5 units of capital at $1,000 per unit. If the going annual wage rate is $4,500, calculate the number of workers employed by the firm. (Assume that the firm spends the entire budget on K and L.)
a. 10 b. 5 c. 15 d. 9