Other things the same, if the price level falls, people
a. increase foreign bond purchases, so the supply of dollars in the market for foreign-currency exchange increases.
b. increase foreign bond purchases, so the supply of dollars in the market for foreign-currency exchange decreases.
c. decrease foreign bond purchases, so the supply of dollars in market for foreign-currency exchange increases.
d. decrease foreign bond purchases, so the supply of dollars in the market for foreign-currency exchange decreases.
a
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Any factor that reduces resource availability causes
a. the aggregate demand curve to shift to the right b. the aggregate demand curve to shift to the left c. the aggregate supply curve to shift to the right d. the aggregate supply curve to shift to the left e. a movement to the left along the existing aggregate supply curve
Marginal analysis is useful in economics, but not in other areas of life
a. True b. False Indicate whether the statement is true or false
Wage differentials across individual workers are determined in part by
A. effort. B. social capital. C. productivity. D. luck. E. All of these are determinants of wage differentials.
When all currencies are tied directly to gold, then
A. the price of each nation's currency in terms of gold is flexible. B. currency exchange rates throughout the world are flexible. C. currency exchange rates throughout the world are fixed. D. the world's stock of gold cannot change.