Currency traders expect the dollar to appreciate. What impact will this have on equilibrium in the foreign exchange market?
A) The dollar will appreciate, and the equilibrium quantity of dollars will increase.
B) The dollar will depreciate, and the equilibrium quantity of dollars exchanged will decrease.
C) The dollar will appreciate, and the equilibrium quantity of dollars will decrease.
D) The dollar will appreciate, and the change in the equilibrium quantity of dollars exchanged cannot be determined.
D
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The value of a dollar
A) is its face value. B) is set by the government. C) is its purchasing power. D) remains constant over time.
When there are positive externalities associated with the consumption of a good, we can expect the market:
a. demand curve to lie above the social demand curve. b. demand curve to lie below the social demand curve. c. supply curve to lie above the social supply curve. d. supply curve to lie below the social supply curve. e. demand curve to lie below the social supply curve.
Under a currency board regime, if domestic citizens are buying more (imports) from foreigners than they are selling to them (exports),
a. the amount of the domestic currency exchanged for the foreign currency will decrease and, thus, increase the domestic money supply. b. the amount of the domestic currency exchanged for the foreign currency will decrease and, thus, decrease the domestic money supply. c. the amount of the domestic currency exchanged for the foreign currency will increase and, thus, increase the domestic money supply. d. the amount of the domestic currency exchanged for the foreign currency will increase and, thus, decrease the domestic money supply.
A cap-and-trade policy
A. has a set number of permits. B. allows polluters to trade permits. C. caps the total level of pollution allowed. D. all of these answer options are correct.