Which of the following will shift the demand for the euro to the right?
A) expectations among speculators that the price of the euro will rise in the future
B) an increase in incomes in countries that buy goods from the European Union
C) an increase in interest rates in the European Union
D) All of the above will shift the demand for the euro to the right.
D
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When the federal government changes purchases and/or taxes to stimulate the economy or rein in inflation, such policy is
A. automatic fiscal policy. B. active monetary policy. C. active federal policy. D. discretionary fiscal policy.
The entry of new firms into a market stops when:
a. the accounting profit of existing firms falls to zero. b. the general price level in the economy rises. c. the rate of interest in the economy declines. d. the economic profit of existing firms falls to zero. e. the corporate taxes are relaxed.
Which of the following equals demand in an open economy?
A) C + I + G + X B) C + I + G + X - IM C) C + I + G + IM - X D) C + I + G
If American demand for purchases of British goods has decreased, how would you expect the equilibrium exchange rate in the market for dollars to respond? Support your answer graphically
What will be an ideal response?