Suppose we were analyzing the Turkish lira per euro foreign exchange market. If the Euro-Area's price level falls relative to Turkey and nothing else changes, then the:
a. The supply of euros in the foreign exchange market rises, and the demand for euros in the foreign exchange market falls, causing a depreciation of the euro.
b. The supply of euros in the foreign exchange market falls, and the demand for euros in the foreign exchange market falls, causing an uncertain change in the value of the euro.
c. The supply of euros in the foreign exchange market falls, and the demand for euros in the foreign exchange market rises, causing an appreciation of the euro.
d. Neither supply nor demand in the foreign exchange market change because relative international prices influence trade flows and not the exchange rate.
e. The supply of euros in the foreign exchange market rises, and the demand for euros in the foreign exchange market rises, causing an uncertain change in the value of the euro.
.C
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How much trade involves shipping goods between the fairly similar high-income economies of the United States, Canada, the European Union, Japan, Mexico, and China?
a. Roughly one-fourth b. Roughly one-third c. Roughly one-half d. Roughly one-fifth
If an economy has perfect income equality, its Gini coefficient would be
a. 1 b. 100 percent c. 100 d. 0 e. 50–50
The 'WHAT goods and services does the US produce' question can best be answered using data about which of the following?
A. Productivity. B. The distribution of GDP among different income quintiles. C. Per capita GDP. D. The distribution of output in markets, specifically among manufacturing, services, and agricultural sectors.
Regarding the nation's money supply, the Federal Reserve
A. precisely sets the amount of money in circulation in consultation with the Congress. B. gives the U.S. Treasury the authority to print as much as it wishes. C. has no ability to influence its magnitude or its rate of growth. D. has a major impact on its rate of growth.