In the foreign exchange market, what could be a possible consequence of an increase in the purchase of stocks of Toyota, a Japanese automobile firm, by U.S. residents?
A. Demand for the dollar will increase
B. Yen will depreciate
C. The supply curve for the dollar will shift to the left
D. The dollar will depreciate
Answer: D
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If the total cost of production for 1000 widgets is $2000 and marginal cost is constant at $1, what is the average fixed cost for the 1000 widgets?
A) $2 B) $1.50 C) $1 D) $0.50
Refer to Scenario 2.2. Under what circumstances will the equilibrium level of output of dental care increase?
A) If supply shifts more than demand. B) If demand shifts more than supply. C) If both demand and supply shift by the same magnitude. D) If supply and demand both decrease.
Banks became more willing to make subprime loans because of:
A. securitization. B. leveraging. C. hedging. D. herd behavior.