What are the economic effects of a depreciation of the dollar on foreign exchange markets?
What will be an ideal response?
Depreciation means that it takes more dollars to buy foreign currencies. This means that foreign goods become more expensive to Americans and imports should decline as Americans shift to spending more on U.S. products. It also means that foreign consumers can obtain more dollars with their currency and therefore, foreign purchases of U.S. exports abroad should rise. Both of these outcomes should stimulate the demand for U.S. goods and expand the U.S. economic output.
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Refer to Figure 7-3. If there was no quota, how many pounds of peanuts would domestic producers supply?
A) 10 million B) 28 million C) 30 million D) 40 million
What is the main difference between common and preferred stocks?
a. Common stocks pay interest whereas preferred stocks pay dividends. b. Preferred stocks carry voting rights whereas common stocks do not carry voting rights. c. Preferred stocks pay a guaranteed dividend, while common stocks may or may not pay dividends. d. In case of bankruptcy, preferred stockholders have a right to the company's asset, whereas common stockholders do not have such rights. e. Common stocks can be converted into preferred stocks while preferred stocks cannot be converted into common stocks.
Based on the graphic for perfect competition versus monopoly, the consumer surplus for perfect competition is ______ the welfare for perfect competition.
a. greater than
b. less than
c. equal to
d. the opposite of
If the AD curve shifts rightward less than expected,
What will be an ideal response?