Due to a boom in the US, the average rate of return on investments is likely to rise causing the demand for US dollar to
a. Increase
b. Decrease
c. Not change
d. None of the above
a
You might also like to view...
When the price of a product decreases, the purchasing power of our income increases and thus permits consumers to purchase more of the product. This statement describes
A. the income effect. B. an inferior good. C. the rationing function of prices. D. the substitution effect.
Explain how the standard of living of the average person in an economy can increase?
What will be an ideal response?
Two perfectly competitive firms, Firm A and Firm B, both face random demand and have the same expected marginal revenue, as illustrated in the figure below. For which firm would a forecast of demand be more valuable?
A) Firm A
B) Firm B
C) The value for each firm is the same because the expected marginal revenue and marginal cost are the same.
D) A forecast is more valuable for Firm A if the demand will be high and more valuable for Firm B if the demand will be low.
Suppose the government imposes a tax that reduces the quantity sold in the market after the tax to Q2. The price that sellers receive is
A. P0. B. P2. C. P5. D. P8.