Refer to the diagram. If eurozone nations decide to import more agricultural products from the United States, we would expect:
A. the demand for euros to increase and the euro to appreciate.
B. the demand for euros to increase and the dollar to appreciate.
C. the supply of euros to increase and the euro to depreciate.
D. the supply of euros to decrease and the dollar to depreciate.
C. the supply of euros to increase and the euro to depreciate.
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The __________ serve to allocate financial resources among households and firms requiring funds.
Fill in the blank(s) with the appropriate word(s).
Why does the AFC curve continue to decline even as the AVC and ATC curves are rising?
a. Fixed costs are not used to calculate average total costs.
b. Fixed costs are being spread over larger volumes of output.
c. Variable costs such as rent tend to decrease over time.
d. Variable costs increase whether output rises or falls.
Assuming competitive markets with typical supply and demand curves, which of the following statements is correct?
A. An increase in supply with no change in demand will result in an increase in price. B. An increase in supply with no change in demand will result in a decline in sales. C. An increase in demand with no change in supply will result in an increase in sales. D. An increase in supply with a decrease in demand will result in an increase in price.
The appreciation of the U.S. dollar relative to the British pound would make a vacation trip to:
A. The United States less expensive for the British B. London less expensive for Americans C. London more expensive for Americans D. The United States of equal value for the British as a vacation trip to London for Americans