If the U.S. dollar appreciates in the foreign exchange market,
a. American goods will become more expensive for foreign buyers and foreign goods will be cheaper for Americans
b. American goods will become less expensive for foreign buyers and foreign goods will be more expensive for Americans
c. American goods will become more expensive for foreign buyers and foreign goods will be more expensive for Americans
d. American goods will become cheaper for foreign buyers and foreign goods will be cheaper for Americans
e. neither the price of U.S. exports nor the price of U.S. imports will change
A
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What does scarcity have to do with the fact that people must make choices?
What will be an ideal response?
If Europe and the United States were the only two regions in the world, then U.S. residents might desire to buy euros for all except one of the following reasons. Which is the exception?
a. to invest in Europe b. to buy European goods c. to improve the U.S. balance of payments d. to make loans in Europe e. to buy European stocks
To avoid a coordination failure, the intentions of savers and investors must be both
a. increasing. b. at their planned levels. c. more than full employment GDP. d. at levels set by the government.
One way in which the Phillips curve is misinterpreted is to think of it as
a. a model of economic activity that explains changes in unemployment and inflation by changes in aggregate demand. b. a statistical relationship between inflation and unemployment. c. depicting a number of alternative equilibrium points the economy could achieve. d. All of the above.