If real interest rates in the United States are higher than those of our trading partners, what will tend to happen to the foreign exchange value of the dollar and the U.S. current account deficit or surplus?
a. The dollar will depreciate; the current account will move toward a deficit.
b. The dollar will depreciate; the current account will move toward a surplus.
c. The dollar will appreciate; the current account will move toward a deficit.
d. The dollar will appreciate; the current account will move toward a surplus.
C
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If a firm decreases output when MR < MC, then:
a. profit will equal zero. b. profit will increase. c. profit will decrease. d. profit will remain the same. e. the firm is minimizing losses.
The concept of aggregate supply refers to a
a. fixed number of output. b. list of products demanded. c. schedule of output. d. schedule of production costs.
Other things constant, when the work opportunities in an occupation are unstable (that is, layoffs are common), the hourly wages of workers in the occupation will tend to be
a. higher than the wages of workers with otherwise similar jobs. b. lower than the wages of workers with otherwise similar jobs. c. below market equilibrium. d. above market equilibrium.
If market forces change the exchange rate value of one dollar from 80 yen to 83.25 yen, then the dollar has
A. appreciated. B. depreciated. C. been revalued. D. been devalued.