A U.S. automobile dealer has ordered a fleet of Japanese cars worth 10 million yen. The terms of payment is C.O.D. (cash on delivery). At the time the order was placed, the exchange rate was 100 yen per U.S. dollar
When the fleet arrived the exchange rate had become 200 yen per U.S. dollar. A) This change in the foreign exchange rate will hurt the U.S. importer.
B) This change in the foreign exchange rate will hurt the Japanese exporter.
C) This change in the foreign exchange rate will benefit the U.S. importer.
D) This change in the foreign exchange rate will benefit the Japanese exporter.
C
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Suppose the cost of a CD is $20. As online retailers enter the market with new technology, the price of CDs ________, and traditional music stores find that ________
A) decreases; their AVC exceeds the new lower price and they exit the industry B) decreases; their ATC curve shifts lower and their profit increases C) increases; they compete with online retailers at the new higher price D) increases; their costs have risen due to the new technology E) decreases; they compete with online retailers with higher profits
A change in the interest rate does not affect the quantity of money supplied. This means that:
a. the money supply curve is negatively sloped. b. the money supply curve is vertical. c. the money supply curve is horizontal. d. the money supply curve is a 45 degree line drawn from the origin. e. the money supply curve is kinked.
There is no such thing as a free lunch." This statement best reflects which of the following?
What will be an ideal response?
The determinants of labor demand include:
A. supply of other factors and output prices. B. culture and other opportunities. C. culture and population. D. culture and technology.