In foreign exchange markets, the demand for dollars is determined:
a. solely by the level of U.S. merchandise exports
b. solely by the level of U.S. merchandise imports.
c. by the level of U.S. imports and the demand for foreign assets by U.S. citizens and the U.S. government.
d. by the level of U.S. exports and the demand for U.S. assets by foreigners.
d
You might also like to view...
Which of the following statements is true?
A) Currency in circulation in any economy is likely to be equal to the total money supply in the economy. B) Currency in circulation in any economy is likely to be less than the total money supply in the economy. C) In the United States, currency in circulation accounts for less than 1% of the money supply. D) In the United States, currency in circulation accounts for more than 50% of the total money supply.
Refer to Figure 27-1. Suppose the economy is in a recession and expansionary fiscal policy is pursued. Using the static AD-AS model in the figure above, this would be depicted as a movement from
A) C to B. B) A to B. C) A to E. D) B to C. E) B to A.
Consider the market for nonalcoholic beers from the previous question. Which of the following is the Bertrand reaction function for Cudweiser?
a. PC = 1 + .033PB b. PC = 1 - .033PB c. PC = 1.5 + .075PB d. PB = 1.5 + .075PC
Absolute advantage is irrelevant, because knowing the absolute number of labor hours required to produce a good does not indicate if a country benefits from trade
a. True b. False Indicate whether the statement is true or false