An appreciation of the U.S. dollar relative to the Japanese yen causes
A. a lower dollar-price of Japanese goods which induces the U.S. to increase their purchasing of Japanese goods.
B. the U.S. to buy less Japanese goods, causing the U.S. to depreciate.
C. the quantity demanded of U.S. dollars to increase because the Japanese want to buy more U.S. goods.
D. the Japanese to buy more U.S. goods, causing the dollars to appreciate further.
Answer: A
You might also like to view...
An increase in the interest rate results in
A) a smaller opportunity cost of investment and so planned investment spending decreases. B) a greater opportunity cost of investment and so planned investment spending increases. C) a greater opportunity cost of investment and so planned investment spending decreases. D) a smaller opportunity cost of investment and so planned investment spending increases.
When leisure is an inferior good, the wage elasticity of labor supply is always positive.
Answer the following statement true (T) or false (F)
As a result of OPEC ________ oil prices in 1973 and 1980, real GDP in United States ________
A) increasing; increased B) increasing; decreased C) decreasing; increased D) decreasing; decreased E) increasing; did not change
A marginal cost curve
A) is upward sloping. B) shows that as more of a good is produced, opportunity costs of producing another unit increase. C) is bowed inward so that its slope can become negative. D) Both answers A and B are correct.