The higher the exchange rate today, the
A) smaller is the expected profit from buying U.S. dollars today and holding them.
B) greater is the expected profit from buying U.S. dollars today and holding them.
C) smaller is the expected profit from buying foreign currency today and holding it.
D) greater the quantity of U.S. dollars demanded in the foreign exchange market today.
A
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A safety report is released that contends that sport utility vehicles are more prone to roll over during crashes than was previously thought. At the same time, the price of steel (used to produce motor vehicles) increases. The net effect of these two incidents on the market for sport utility vehicles is a(n): a. decrease in price and an increase in equilibrium quantity
b. decrease in price and a decrease in equilibrium quantity. c. increase in price and a decrease in equilibrium quantity. d. indeterminate change in price and a decrease in equilibrium quantity.
The long-run equilibrium in a competitive market characterized by firms with identical costs is generally characterized by firms operating at efficient scale
a. True b. False Indicate whether the statement is true or false
Macroeconomics is:
A. an analysis of economic reality that proceeds from the parts to the whole. B. the study of the pricing policies of firms and the purchasing decisions of households. C. the study of aggregate economic relationships. D. the study of individual choice and how that choice is influenced by economic forces.
As pollution emissions increase, the added cost of one more unit of emissions goes down.
Answer the following statement true (T) or false (F)