A U.S. company that wishes to sell more to other countries would favor:
A. an appreciation of the dollar.
B. a depreciation of the dollar.
C. neither an appreciation nor a depreciation of the dollar.
D. higher interest rates.
Answer: B
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When people are standing in line for jobs and there are more applicants than jobs, then the labor market is characterized by a
A. Shortage of jobs from the point of view of the buyer in the labor market. B. Surplus of labor. C. Surplus of jobs from the point of view of the seller in the labor market. D. Shortage of labor.
The market demand for school supplies is more elastic at the beginning of the semester than it is at the start of summer vacation.
Answer the following statement true (T) or false (F)
Exchange rates determined by the forces of demand and supply are called
A. fixed exchange rates. B. floating exchange rates. C. equilibrium exchange rates. D. dirty exchange rates.
Suppose the economy is initially experiencing a recessionary gap. A reduction in the size of the budget deficit will cause which of the following in the short run?
A. an increase in the size of the recessionary gap and decrease in real GDP. B. a reduction in the size of the recessionary gap and increase in real GDP. C. an inflationary gap. D. an increase in inflation and increase in aggregate supply.