In the market for euros, the supply of euros (€) is
A. upward sloping, because lower dollar prices of euros means that U.S. goods are cheaper to Europeans.
B. downward sloping, because lower dollar prices of euros mean that U.S. goods are cheaper to Europeans.
C. downward sloping, because higher dollar prices of euros mean that U.S. goods are cheaper to Europeans.
D. upward sloping, because higher dollar prices of euros means that U.S. goods are cheaper to Europeans.
Answer: D
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Refer to the scenario above. The opportunity cost of producing one pound of apples in Zeta is:
A) 0.67 pounds of oranges. B) 2 pounds of oranges. C) 1.5 pounds of oranges. D) 3 pounds of oranges.
The reason that it is possible for the economy in the above figure to be at E2 rather than at E1 is that
A) in the long run there is always less than full employment. B) in the short run the economy can produce more than it can in a long-run full-adjustment situation. C) AD always shifts outward and never shifts inward. D) the economy must be in a recession.
In industries in which strong network effects exist, which industry structure is likely to emerge?
A) perfect competition B) monopoly C) monopolistic competition D) oligopoly
If the Fed wishes to maintain its interest rate target in the face of increased money demand it would likely
a. increase the money supply. b. decrease the money supply. c. more stringently enforce already existing banking regulations. d. propose new banking regulations. e. become more lax when it enforces already existing banking regulations.