In the above figure, which of the following is a possible explanation for the reduction in the equilibrium value of the European euro from P2 to P1?
A. the European central bank's decision to buy euros on the world market
B. a decrease in the price of California wines, assuming that French wines and California wines are substitutes
C. an increase in the price of California wines, assuming that French wines and California wine are substitutes
D. an increase in demand for French automobiles
Answer: B
You might also like to view...
The total collection of pieces of property that serve to store value is a person's
A) wealth. B) income. C) money. D) credit.
Which of the following is an example of an adverse selection problem?
a. A customer purchases four apples, two of which are bruised. b. A card shop puts its Halloween merchandise on sale on November 1st. c. A young job applicant fails to reveal that she was fired from her last job because she was incompetent. d. A man rents a car and then drives it less carefully and fills it with cheaper gas than he would if he owned it.
If the government borrowed funds are invested more in ________ , then it would improve labor productivity and the nation's future standard of living
a. farm subsidies b. retirement benefits c. educated workforce d. defense
Which of the following is an example of the wealth effect during a period of inflation?
A. A firm receives a fixed price for the services it sells while the price level is rising B. You hold money in a savings account that earns 5 percent interest while the price level doubles C. Your income stays constant while the price level doubles D. You pay for utilities that are becoming more expensive as the price level is rising