Which of the following is consistent with moving from a surplus to equilibrium in the market for foreign currency exchange?
a. the exchange rate falls causing U.S. residents to import more
b. the exchange rate falls causing U.S. residents to import less
c. the exchange rate rises causing U.S. residents to import more
d. the exchange rate rises causing U.S. residents to import less
b
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How can an economy's consumption expenditures be larger than its national income?
When you pay for some purchase with a check, cash must be transferred to another account to pay for the check
a. True b. False Indicate whether the statement is true or false
Which of the following are not included in the M1 definition of the money supply?
a. cash and currency b. checkable deposits c. money market deposit accounts d. All of the above are included.
If a pollution tax imposed on a firm is smaller than the external cost:
A. the externality is completely internalized. B. the social production cost increases by the amount of the pollution tax. C. the pollution tax transfers the full cost borne by people outside the firm back to the firm itself. D. from society's viewpoint, the firm is producing too much.