If a trader thinks that the value of yen with respect to the euro is about to fall, which of the following would enable him to make a profit?
A) buy a forward contract for euros
B) buy a forward contract for yen
C) sell yen in the spot market
D) buy euros in the spot market
A
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Describe how a demand-pull inflation can occur
What will be an ideal response?
If foreign input prices increase and the United States is a purchaser of those inputs, then the U.S
A) AD curve will shift leftward and U.S. prices will fall. B) AD curve will shift rightward and U.S. prices will rise. C) SRAS curve will shift leftward and U.S. prices will rise. D) SRAS curve will shift rightward and U.S. prices will fall
Firms 1 and 2 compete in a Cournot duopoly. If firm 2 adopts a strategy that raises firm 1's marginal cost:
A. firm 2 will lose market share. B. firm 1 will reduce its output. C. firm 2 will enjoy lower profits. D. None of the statements is correct.
Suppose that Shen and Valerie are the only consumers of pizza slices in a particular market. The following table shows their weekly demand schedules
On the following graph, plot Shen's demand for pizza slices using the green points (triangle symbol). Next, plot Valerie's demand for pizza slices using the purple points (diamond symbol). Finally, plot the market demand for pizza slices using the blue points (circle symbol). Line segments will automatically connect the points. Remember to plot from left to right.
