What are the economic effects of an appreciation of the dollar in foreign exchange markets?
What will be an ideal response?
Appreciation of the dollar means that it takes fewer dollars to obtain foreign currencies. This means that foreign goods become less expensive to Americans and import spending should rise as Americans shift from buying U.S. products to buying the now cheaper foreign products. It also means that it takes more foreign currency to obtain U.S. dollars and therefore, U.S. exports abroad should fall. Both of these effects depress demand for U.S. goods and may have a depressing effect on the U.S. economy.
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The law of diminishing marginal utility helps explain: a. why most individual demand curves are straight lines. b. why most supply curves slope upward
c. why most individual demand curves slope downward. d. why marginal utility falls when total utility falls.
If technological change increases the profitability of new investments for firms, then the ________ curve for loanable funds will shift to the ________
A) supply; right B) supply; left C) demand; right D) demand; left
In perfectly competitive industries, firms can easily enter and exit the industry in the long run.
Answer the following statement true (T) or false (F)
What is a black market and how does it influence the market for rental housing if a rent ceiling creates a housing shortage? What determines the level of the black market rent?
What will be an ideal response?