The graph illustrates the market for British pounds, the currency of the United Kingdom. As the number of buyers of pounds decreases and the number of sellers of pounds increases, the equilibrium price of a pound
A) will remain the same.
B) will rise.
C) will fall
D) might rise, fall, or remain the same but more information is needed.
E) will rise if the magnitude of the effect on the buyers is larger than the magnitude of the effect on the sellers.
C
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The part of the balance of payments that records purchases of assets a country has made abroad and foreign purchases of assets in the country is the
A) capital account. B) current account. C) financial account. D) statistical discrepancy account.
Suppose a college increases the wages paid to student employees. Which of the following options is the best description of the most likely effect of the increase in wage earnings on the demand curve for school sweatshirts in the bookstore?
A) The demand curve shifts to the right. B) The demand curve shifts to the left. C) a leftward movement along the demand curve D) a rightward movement along the demand curve
The cost of maintaining unemployment below its natural rate with expansionary government policy is: a. increasing inflation
b. decreasing inflation. c. always a larger federal deficit. d. always a smaller federal deficit.
Carla spends all her income on two goods: apples and bananas. The price of an apple is $2 and the price of a banana is $1 . If Carla's marginal utility of an apple is 4 and her marginal utility of a banana is 3, she should consume
a. more apples and fewer bananas to maximize total utility b. more bananas and fewer apples to maximize total utility c. more apples and more bananas to maximize total utility d. fewer apples and fewer bananas to maximize total utility e. exactly what she is consuming because she always makes the most rational choice each time she spends a dollar.