When the price of apples is $3 per bushel, and the quantity demanded is 1,000 bushels,
A) consumers need 1,000 bushels.
B) consumers plan to purchase a total of 1,000 bushels.
C) both A and B are true.
D) none of the above is true.
B
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If people expect the dollar to depreciate, then the
A) demand for dollars will decrease, the supply of dollars will increase, and the exchange rate will fall. B) demand for dollars will decrease, the supply of dollars will not change, and the exchange rate will fall. C) supply of dollars will increase, the demand for dollars will not change, and the exchange rate will fall. D) demand for dollars will increase, the supply of dollars will decrease, and the exchange rate will rise.
Refer to Figure 29-3. Consider the market for U.S. dollars against the Japanese yen shown above. An event which could have caused the changes shown in the graph would be
A) an economic expansion in the United States. B) an increase in U.S. real income. C) a decrease in Japanese interest rates. D) speculators expect the dollar to depreciate in value in the near future.
If a price ceiling were established above the equilibrium price,
A) it would have no effect on the quantity demanded. B) it would create a shortage. C) it would create a surplus. D) none of the above.
Over the past two decades the U.S. balance on current accounts has
a. been in deficit b. generated surpluses c. been very erratic, swinging from deficits to surpluses to deficits d. essentially been in balance e. declined in importance compared to the balance on capital account