Other things remaining the same, the
A) larger the value of U.S. imports, the smaller is the quantity of foreign currency demanded.
B) larger the value of U.S. imports, the greater is the quantity of U.S. dollars supplied to the foreign exchange market.
C) lower the exchange rate, the cheaper are foreign-produced goods and services.
D) higher the exchange rate, the greater is the expected profit from selling dollars.
B
You might also like to view...
Value added equals the market price of the firm's product minus
A) the price of intermediate goods. B) wages and salaries. C) the price of all factors of production. D) depreciation on plant and equipment.
Give five examples of factors that could reduce the demand for money
What will be an ideal response?
The combination of psychology and economics to determine individual decision making is known as
A) behavioral economics. B) psychonomics. C) the rule of thumb. D) positive analysis.
Suppose a local bookstore notices that a 2 percent increase in book prices leads to a 2 percent decrease in the number of books sold. Which of the following is true?
a. Demand for books is price elastic. b. The store's sales revenue did not change. c. Demand for books is price inelastic. d. Demand for books is perfectly inelastic. e. The bookstore could increase revenue by further lowering prices.