When foreign countries buy wheat grown in the United States, they are generating a
A. Supply of U.S. dollars and a supply of a foreign currency.
B. Supply of U.S. dollars and a demand for a foreign currency.
C. Demand for U.S. dollars and a supply of a foreign currency.
D. Demand for U.S. dollars and a demand for a foreign currency.
Answer: C
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If the supply curve for housing has the normal positive slope, rent controls will likely
a. increase the amount of housing. b. improve the quality of housing. c. aggravate the housing shortage. d. help low-income families find suitable housing. e. increase the demand for housing.
Being a monopolist in the market
a. guarantees a positive short-run profit. b. guarantees a positive long-run profit. c. does not contradict with the rule that profit is maximized where MR = MC. d. All of the above are correct.
In the market for euros, the supply of euros (€) is
A) downward sloping, because lower dollar prices of euros mean that U.S. goods are cheaper to Europeans. B) downward sloping, because higher dollar prices of euros mean that U.S. goods are cheaper to Europeans. C) upward sloping, because higher dollar prices of euros means that U.S. goods are cheaper to Europeans. D) upward sloping, because lower dollar prices of euros means that U.S. goods are cheaper to Europeans.
Final goods:
What will be an ideal response?