What is the primary benefit to the United States of a high price for the dollar in the foreign exchange market?
A. It increases the international status of other countries, which gives them an incentive to be our trading partners.
B. It makes foreign goods cheaper, helping consumers.
C. It encourages exports, helping producers.
D. There are no benefits to the United States of a high price for the dollar; a lower price is always better.
Answer: B
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a. government determines the rules of the game b. firms are strategically independent c. firms are price takers d. a player's strategy must take account of the strategies followed by other players e. a player's strategy must be independent of the strategies followed by other players
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Indicate whether the statement is true or false
What rule(s) should a firm follow in deciding optimum output for profit maximization?
Small, open economies are probably more vulnerable to contagion than large, relatively closed economies.
Answer the following statement true (T) or false (F)