An increase in Mexican incomes will have what effect on the foreign exchange market for Mexican pesos?
a. shift demand to the left
b. shift demand to the right
c. no effect
d. shift supply to the left
e. shift supply to the right
E
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In 2012, the United States had
A) a current account deficit because imports were greater than exports. B) a current account deficit and a capital and financial account deficit. C) a capital and financial account deficit because exports were greater than imports. D) a current account surplus because imports were greater than exports. E) no change in U.S. official reserves.
How can trade policy, fiscal policy, and monetary policy be used to support fixed exchange rates when there is a surplus of U.S. dollars?
What will be an ideal response?
Gage sells lumber to the archery industry, and he has to haul it to his buyers on his flatbed truck. His contract states that if the price of fuel for his truck increases his overall costs by a certain percentage, the price he gets for his lumber will automatically increase by the same percentage. This is an example of ______.
a. disinflation b. stagflation c. indexing d. anchoring
If, in response to a decrease in the price of coffee, the quantity of coffee demanded increases, then economists would describe this as
A) an increase in demand. B) an increase in quantity demanded. C) a change in consumer income. D) an increase in consumers' taste for coffee.