A decrease in the expected future domestic exchange rate causes the demand for domestic assets to shift to the ________ and the domestic currency to ________, everything else held constant
A) right; appreciate
B) right; depreciate
C) left; appreciate
D) left; depreciate
D
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Use the graph below to answer the next question.
Other things equal, an increase the wages of nurses in the United States would:
A. move from b to a on D1. B. move from a to b on D1. C. shift from D2 to D3. D. shift from D3 to D2.
Explain why some amount of ignorance can be rational
What will be an ideal response?
In a competitive market, prices adjust until all consumers find themselves
A) maximizing utility. B) on the contract curve. C) happy with their original endowment. D) with many opportunities to gain from additional exchange.
An example of underutilization is producing
a. as many muffins and widescreen televisions as the economy is capable of making b. fewer muffins and widescreen televisions than the economy is capable of making c. more muffins and fewer widescreen televisions d. fewer muffins and more widescreen televisions