Figure 18-2
illustrates supply and demand for U.S. dollars and British pounds in the foreign exchange market. Which of the following would cause the demand for foreign exchange (pounds) to shift from D1 to D2?
a.
an increase in the real interest rate in Britain relative to the United States
b.
higher inflation in Britain than in the United States
c.
higher income growth in Britain than in the United States
d.
an increase in the number of British citizens vacationing in the United States
a
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A) currency B) traveler's checks C) demand deposits D) small-denomination time deposits
If England uses one week's time to produce ten yards of cloth or two barrels of wine and Portugal uses one week's time to produce twelve yards of cloth or six barrels of wine, England has the comparative advantage in both goods
a. True b. False Indicate whether the statement is true or false
Where are the most economically advanced capitalist countries located?
a. Western Europe b. North America c. New Zealand d. All of the above are locations of some of the most economically advanced capitalist countries.
Marginal land is land that is not worth anything under any circumstances.
Answer the following statement true (T) or false (F)