If the dollar appreciates and foreign goods become less expensive, the total planned expenditures on domestic goods and services will
A. fall due to the open economy effect.
B. increase due to the open economy effect.
C. increase due to the interest rate effect.
D. fall due to the interest rate effect.
Answer: A
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The difference between exports and imports in GDP is called
A) import tariffs. B) net exports. C) net imports. D) gross imports.
High-wage workers are
a. more likely than low-wage workers to supply more labor when the wage rate rises. b. about as likely as low-wage workers to supply more labor when the wage rate rises. c. less likely than low-wage workers to supply more labor when the wage rate rises. d. The available evidence does not indicate how high-wage workers and low-wage workers differ in responding to changes in the wage rate.
Tom, the manager and owner of a small company, believes in the signaling theory of education, not the human capital theory. As such, Tom would be most likely to agree with which of the following quotes?
a. "We encourage our employees to enroll in night classes to improve their on-the-job productivity.". b. "We encourage our employees to participate in online seminars to learn new skills.". c. "We pay higher wages to employees who have MBAs because, on average, their job performance is better than similar employees who do not have MBAs.". d. "When we interview prospective employees at job fairs, we are looking for college graduates because they have the determination and follow-through to finish what they start.".
If the demand for dollars in the market for foreign-currency exchange shifts right, then the exchange rate
a. rises and the quantity of dollars exchanged rises. b. rises and the quantity of dollars exchanged does not change. c. falls and the quantity of dollars exchanged falls. d. falls and the quantity of dollars exchanged does not change.