The law of demand for dollars in the foreign exchange market means that the
A) lower the exchange rate, the greater the quantity of dollars demanded.
B) higher the exchange rate, the smaller the quantity of dollars demanded.
C) lower the exchange rate, the smaller the quantity of U.S. exports demanded.
D) Both answers A and B are correct.
D
You might also like to view...
Refer to Scenario 12.3. What will be the price of this new drink in the long run if the industry is a Cournot duopoly?
A) $3 B) $9 C) $12 D) $13.50 E) none of the above
Suppose that the labor market for life guards is initially in equilibrium. Whistles are an important safety tool that life guards use as a part of their jobs. A fire destroys the largest factory that produces whistles. What happens to the equilibrium wage and quantity of life guards?
a. Both the equilibrium wage and quantity increase. b. Both the equilibrium wage and quantity decrease. c. The equilibrium wage increases, and the equilibrium quantity decreases. d. The equilibrium wage decreases, and the equilibrium quantity increases.
Suppose there are 50 million persons in the population, 25 million persons in the civilian labor force, and 20 million persons are employed. The number of persons unemployed is _______ million and the unemployment rate is ___________ percent
A) 25; 50 B) 5; 10 C) 5; 20 D) 10; 10
Which statement is true?
A. The monopolistic competitor breaks even in the long run. B. The monopolistic competitor operates at an output that is less than peak efficiency. C. The monopolistic competitor has a small influence on price because its products are differentiated. D. All of the choices are true.