All else being equal, if European firms switch from U.S. produced software to software produced in India, the equilibrium value of the U.S. dollar will:
A. fall.
B. either rise or fall depending on whether the supply or demand for dollars changes more.
C. rise.
D. become fixed.
Answer: A
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If national saving (S) is $100,000, net taxes (T) equal $100,000 and government expenditure (G) is $25,000, how much are households and businesses saving?
A) $25,000 B) $225,000 C) -$25,000 D) none of the above
The number of units of developing country currency required to purchase a basket of goods and services in a developing country that costs one dollar in the U.S. is given by
a. GNI price deflator. b. Human Development Index ranking. c. purchasing power parity. d. the exchange rate.
Which of the following is NOT an objective of economic regulation?
A) to regulate the prices enterprises are allowed to charge B) to fix prices so that they are never allowed to rise C) to keep rates of return in an industry at a competitive level D) to prevent monopoly profits
Explain why some economists believe an efficiency wage serves to make a business more profitable.
What will be an ideal response?