Use the following graph, which shows the supply and demand for British pounds, to answer the next question.
D1 and S1 represent the initial demand and supply curves. If there is a huge increase in the desire of U.S. buyers to consume British products, and the British government starts buying U.S. dollars in order to fix the exchange rate at the initial level, then the new equilibrium will be found at ________.
A. Point H
B. Point C
C. Point F
D. Point J
Answer: A
You might also like to view...
The Tea Act:
a. raised the price of tea to colonists. b. allowed for more "middlemen" to be involved in the exportation of tea from India to America. c. made tea an "enumerated good" under the Navigation Acts. d. harmed smugglers of Dutch tea.
Suppose there are 100 firms each with a short run total cost of STC = q2 + q + 10, so that marginal cost is MC = 2q +1 . If market demand is given by QD = 1050 ? 50P, how much will the individual firm produce?
a. 3 b. 4 c. 5 d. 6
If a man marries his hired housekeeper, the value of GDP:
a. rises. b. falls. c. is unchanged. d. rises, but the value of GDP falls.
Panel data requires
A. data on individual entities. B. time. C. neither data on individual entities nor time. D. both data on individual entities and time.