Answer the following questions true (T) or false (F)
1. If currency speculators decide that the value of the dollar should rise in the future relative to the yen, this will increase the demand for dollars and decrease the supply of dollars.
2. A real appreciation of the dollar is caused by either a nominal appreciation of the dollar, a rise in the foreign price level, or a fall in the U.S. price level.
3. A rise in the dollar price of the Chinese yuan signals an appreciation of the yuan and a depreciation of the dollar.
1. TRUE
2. FALSE
3. TRUE
You might also like to view...
Refer to Table 20-9. Suppose that the data in the table above reflect the price levels in the economy. Given that data, we can say that the cost of living rose by ________ between 2015 and 2016?
A) 2% B) 5% C) 8% D) 11% E) 13%
Which of the following is a main political objection against using the market to reduce pollution?
A. Pollution charges and cap-and-trade schemes raise prices and lower consumer welfare. B. Cap-and-trade redistributes income from less-efficient polluters to more-efficient polluters. C. Firms already pay a high corporate tax. D. Consumers do not have the same built in tax loopholes as firms.
The removal of legal barriers alone may not be sufficient to eliminate the pay gap between whites and blacks because the increased competition may not be able to overcome
A. customer preferences that lead employers to discriminate. B. the wide gap in pay. C. employer preferences to discriminate. D. employer preferences to discriminate and customer preferences that lead employers to discriminate.
Two identical firms that share a market and produce a homogenous good will find the Bertrand Oligopoly LEAST attractive because
A) Cartels generate the highest joint profit. B) a Cournot Oligopoly will generate more profit than a Bertrand Oligopoly. C) they want to avoid a price war that leads to profit erosion and P = MC. D) All of the above.