Suppose the exchange rate is initially set at 100 yen per dollar and increases to 125 yen per dollar. This would be expected to cause the price of U.S. goods in the Japanese economy to
A. increase.
B. change in a manner that cannot be determined without additional information.
C. remain the same since domestic demand remains the same.
D. decrease.
A. increase.
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Consumer surplus can be defined as the difference between:
a) the demand curve and the price of the good. b) the supply curve and the price of the good. c) the supply curve and the demand curve. d) the price charged by sellers and the price paid by buyers.
Of the four effects on interest rates from an increase in the money supply, the initial effect is, generally, the
A) income effect. B) liquidity effect. C) price level effect. D) expected inflation effect.
An increase in the quality of capital is a result of
A. embodied technical change. B. population growth. C. disembodied technical change. D. an increase in the labor force.
The demand for Chiquita bananas is more inelastic than the demand for fruit.
Answer the following statement true (T) or false (F)