Use the following graph to answer the next question.
Assume that Japan and the United States are engaged in a system of flexible exchange rates. If more Japanese tourists decide to visit the United States for their vacations, the yen will ________ and the U.S. dollar will ________.
A. depreciate; depreciate
B. depreciate; appreciate
C. appreciate; depreciate
D. appreciate; appreciate
Answer: B
You might also like to view...
Assume the exchange rate is 1 U.S. dollar equals 1.10 Canadian dollars. If purchasing power parity is correct, a DVD that has a price of $10 in Rochester, New York, in Canada has a price of ________ Canadian dollars
A) 10.00 B) 10.10 C) 11.00 D) 11.11 E) 9.09
The cost, c, of a college education that serves only as a signal of a high-quality worker is $10,000. The wage of a known high-quality worker, wh, is $30,000. The wage for a known low-quality worker, wl, is $10,000
For what value of the share of the work force that is of high quality, s, is a pooling equilibrium possible? A) s > 0.5 B) s = 0 C) s = 0.25 D) s < 0.45
If a perfectly competitive firm is currently employing workers to the point where the value of the last worker's marginal product is equal to the wage rate, and the government imposes a minimum wage higher than the value of the worker's marginal
product, we can predict that A) the firm will pay the higher wage rate and not change the number of workers hired. B) the firm will no longer employ the marginal worker. C) the firm will increase its price. D) the firm will employ more workers.
Which one of the following will cause the production possibilities curve to shift outward?
a. improved public education b. improved health care systems c. larger budgets for research, development, and exploration d. all of the above