In the market for euros, the demand for euros (€) is
A) downward sloping, because at lower dollar prices for the euro, U.S. residents will buy more European goods and services.
B) upward sloping, because at higher dollar prices for the euro, U.S. residents will buy more European goods and services.
C) upward sloping, because at higher dollar prices for the euro, Europeans will buy more U.S. goods and services.
D) horizontal, because dollar prices of euros and euro prices of dollars are directly related.
A
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When economists say wages are "sticky," they mean that they:
A. are slow to adjust to changes in the economy, and can cause unemployment. B. stick to current market trends, and adjust to equilibrium when changes in the economy occur. C. get stuck behind current market trends, and follow a typical two-week lag with changes in the economy. D. lead market trends, and other variables will stick to the wage rate and follow it closely.
Frank owns Frank's Shoes. During a particular period, the price of shoes rises and Frank produces more shoes by hiring more workers and using more material, such as leather. However, he still works with the same size factory because he has a long-term lease. You know that
a. by producing more, Frank's supply curve of shoes shifts to the right b. the factory is overworked so that Frank cannot maintain the production levelhe selected c. by producing more, Frank's demand curve for shoes shifts to the left d. Frank is producing in the short run e. Frank is producing in the long run
Normally, to the extent that a governmental control mechanism succeeds in affecting price, it can be expected to lead to a corresponding
a. reduction in the volume of sales only if the price is forced down. b. reduction in the volume of sales if the price is forced down and an increase in the volume of sales if the price is forced up. c. decrease in the volume of sales whether the price is forced up or down. d. increase in the volume of sales whether the price is forced up or down.
How can unions decrease productivity?
What will be an ideal response?