For which of the following is demand likely to be the most price inelastic?
a. furniture
b. automobiles
c. hotel rooms
d. airline travel
e. candy bars
E
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Which two time periods did the U.S. begin to experience a sharp increase in Current Account deficits?
A) 1981, mid-1990s B) 1971, mid-1990s C) 1961, mid-1990s D) 1971, mid-1980s E) 1985, mid-1990s
Jimmy is very excited about the costume party with a 1990s theme. He is planning to dress up as MC Hammer but is also considering going as a lifeguard from Baywatch. His opportunity cost of arriving dressed like MC Hammer is:
A. the cost of parachute pants that MC Hammer would wear. B. the savings from not purchasing red swimming trunks. C. giving up the alternative of dressing like a lifeguard. D. there is no opportunity cost because he attended the party either way.
Poverty is considered to be more permanent in the United States than it is in other nations.
Answer the following statement true (T) or false (F)
What are the major types of transactions or activities that result in an increase in the demand for foreign currency (in exchange for U.S. dollars) in the spot foreign exchange market?
What will be an ideal response?