Suppose a country experiences capital flight. Of the demand for loanable funds and the supply of currency in the market for foreign-currency exchange, which shifts right?
a. only the demand for loanable funds
b. only the supply of its currency in the market for foreign-currency exchange
c. both curves shift right
d. neither curve shifts right
c
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Suppose the demand for good X is Q = 500P-1. This demand curve has a ________ (constant, variable) elasticity of demand equal to ________.
A. constant; -1 B. variable; -0.5 C. constant; -0.2 D. variable; -2
The supply schedule shows the specific quantity of a good that suppliers are willing and able to:
A. demand at various prices. B. produce at various costs. C. hold back from the market when competition is reduced. D. provide at different prices.
Which of the following would most likely generate a positive externality?
A. Pollution B. Education C. Alcoholic beverages D. Roller coaster rides
If the graph shown represents Stella's budget constraint, and she has income of $48 to spend on these two items, Stella could choose which consumption bundle?
A. One pair of earrings and seven hairbands
B. Four pairs of earrings and eight hairbands
C. Three pairs of earrings and six hairbands
D. Two pairs of earrings and four hairbands