When a Mexican resident buys a ukulele from a U.S. producer, there is a(n)
A) increase in the supply of dollars in the foreign exchange market.
B) decrease in the supply of dollars in the foreign exchange market.
C) increase in the demand for dollars in the foreign exchange market.
D) decrease in the demand for dollars in the foreign exchange market.
C
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The oversimplified multiplier formula assumes that the
A. level of consumption spending is fixed. B. price level is fixed. C. government spending is fixed. D. net exports depend on income.
Refer to Figure 9.8. In order to eliminate international trade in sugar altogether, this country would have to impose a quota of
A) 0 tons. B) 200 tons. C) 300 tons. D) 350 tons. E) 500 tons.
The historical record suggests that
A) the Phillips curve is horizontal. B) once policy makers attempted to exploit a short-run Phillips curve trade-off, it disappeared. C) shifts in long-run aggregate supply do not affect real output. D) inflation rates are lowest when unemployment rates are also low.
Contractionary fiscal policy
What will be an ideal response?