What does it mean when a country’s exchange rate weakens?
a. Its currency appreciates.
b. Its currency gains in value.
c. Its currency falls in value.
d. Its currency buys more imports.
c. Its currency falls in value.
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Answer the next question on the basis of the data given for two regions, East and West, of a hypothetical world. The nations have the production possibilities for units of food and clothing given below.East Production PossibilitiesWest Production Possibilities ABCD ABCDFood241680Food4530150Clothing04812Clothing051015Which of the following is true?
A. For the West region, the cost of 5 units of clothing is 10 units of food. B. For the East region, the cost of 8 units of food is 8 units of clothing. C. For the West region, the cost of 15 units of food is 5 units of clothing. D. For the East region, the cost of 4 units of clothing is 6 units of food.
The only two firms in a market are trying to decide what price to charge. The payoff matrix for this duopoly game is shown above. The payoffs are thousands of dollars of economic profit. Which of the following statements is correct?
A) If the firms play this game repeatedly, one would end up charging $20 and the other $10. B) If the firms cooperate, they could both earn $55,000 in economic profit. C) The Nash equilibrium in this game is for both firms to set P = $20 because that maximizes their combined profit. D) Firm B's strategy is to always set P= $20 because that gives Firm B the highest possible profit. E) If Firm B sets P = $20, then Firm A will maximize its profit by setting its P = $20.
Which of the following has been found to be most effective in improving the quality of education?
A. Forcing students to study longer at home B. Distributing textbooks C. Providing parents with information about the quality of the children's schools D. Training women in the community to offer supplemental lessons
If Congress raised taxes on businesses, this action would:
A. increase per-unit production costs and thus decrease aggregate supply. B. increase aggregate demand and increase aggregate supply. C. increase per-unit production costs and thus increase aggregate supply. D. increase per-unit production costs and thus increase aggregate demand.