When the value of the British pound changes from $1.50 to $1.25, then the pound has ________ and the U.S. dollar has ________
A) appreciated; appreciated
B) depreciated; appreciated
C) appreciated; depreciated
D) depreciated; depreciated
B
You might also like to view...
All the factors below are causes of diminishing marginal returns, except
a. Difficulty of monitoring and motivating larger workforces b. Increasing complexity of larger systems c. Specialization and division of Labor d. The "fixity' of some factor
Adam Smith wrote two very important books. The Wealth of Nations describes how markets work when people exercise self-interest. The other claims that humans
A. have a moral sense which gives them an interest in the wellbeing of others. B. who reject religion will be unsuccessful in markets. C. have not relied enough on the visible hand of government to control markets. D. constantly miscalculate and make bad decisions.
The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
The demand for auto mechanics increased in the summer of 2016, but the starting wages paid to auto mechanics was still the same at the end of 2016. This is an example of a
A. price control. B. flexible price. C. highly regulated market. D. sticky price.