The supply of the U.S. dollar on the foreign exchange market is generated by:
a. demand for U.S. exports.
b. the U.S. demand for the products and financial assets of other countries.
c. the U.S. demand for domestic goods and services.
d. foreign demand for U.S. products.
e. foreign demand for U.S. financial assets.
b
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When a unit tax is placed on a supplier they are generally able to shift a portion of the burden to demanders by raising the prices paid by demanders
a. True b. False
Out of the three products, which product has a unitary elastic demand curve?
a. Cigarettes b. Alcohol c. Sodas d. None of the above
Suppose that when the price of a good falls from $12 to $9, the quantity demanded of that good rises from 310 units to 350 units. What is the approximate price elasticity of demand between these two prices?
a. 0.42 b. 2.36 c. 0.68 d. 3.80 e. 1.12
________ in the foreign interest rate causes the demand for domestic assets to ________ and the domestic currency to depreciate, everything else held constant
A) An increase; increase B) An increase; decrease C) A decrease; increase D) A decrease; decrease