If the government of a country is maintaining an overvalued currency against the dollar, then the:
A) quantity of dollars demanded will exceed the quantity of dollars supplied in the foreign exchange market.
B) quantity of dollars demanded will equal the quantity of dollars supplied in the foreign exchange market.
C) quantity of domestic currency demanded will exceed the quantity of dollars supplied in the foreign exchange market.
D) quantity of dollars supplied will exceed the quantity of dollars demanded in the foreign exchange market.
D
You might also like to view...
Use the following graph showing the demand and marginal revenue curves faced by a pure monopoly to answer the next question.
If the pure monopoly wants to sell quantity Q1, it should charge
A. P1. B. P2. C. 0. D. a price not labeled on the graph.
Faster economic growth in the United States may lead to the serious macroeconomic problem of higher
a. levels of unemployment. b. federal budget deficits. c. levels of inflation. d. levels of poverty.
Quantify the cost savings associated with a cost-effective abatement allocation achieved through trading.
Suppose two point sources are discharging phosphorus into Wisconsin’sFox River and face the following abatement costs for this pollutant: Point Source 1: TAC1 = 500 + 0.35(A1)2 MAC1 = 0.7A1 Point Source 2: TAC2 = 750 + 1.05(A2)2 MAC2 = 2.1A2, where A1 and A2 represent the abatement of phosphorus effluents in pounds by Source 1 and Source 2, respectively, and TAC and MAC are measured in hundreds of dollars. Assume that the state environmental authority has set the total maximum daily load (TMDL) for the Fox River. To achieve this limit, 40 pounds of phosphorus must be abated across the two point sources. Use this information to answer the following questions.
At which point is the real wealth lowest?
a. A
b. B
c. C
d. Y