Suppose that the exchange rate between British pounds and U.S. dollars is originally $2.50 per pound. If it then changes to $3 for 1 pound, the price of U.S. goods to British importers will:
a. rise
b. fall.
c. stay the same.
d. change in an indeterminate direction.
b
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The division of labor usually refers to splitting
a. the three coordination decisions among different sets of planners. b. the parts of a complex task among different workers. c. the production of consumption goods and capital goods among different workers. d. political leaders into radical and conservative camps each year.
Part of the normal aftermath of a period of excessive aggregate demand is
a. improvement in the quality of life. b. reflation. c. real GDP growth. d. stagflation. e. All of the above.
The amount of additional aggregate demand needed to achieve full employment after allowing for price level changes is
A. The inflationary GDP gap. B. The AD excess. C. The recessionary GDP gap. D. The AD shortfall.
All the following would be a possible loan that the International Monetary Fund might make EXCEPT
A. long-term loans to countries which are having problems in repaying existing debts. B. long-term loans to a nation's government which support growth promoting projects. C. a loan to a private firm. D. short-term loans to a nation's government.