If the value of the U.S. dollar changes from 1.2 euros to 1.4 euros, we would expect that the United States would experience a ________ in exports and a ________ in imports.
A. rise; rise
B. fall; fall
C. rise; fall
D. fall; rise
Answer: D
You might also like to view...
If an overvalued currency is allowed to float:
A) its quantity demanded in exchange for the other currency will decrease. B) its quantity supplied in exchange for the other currency will increase. C) its value will depreciate. D) its value will appreciate.
An insolvent bank is one that owes more money to its depositors than it has in cash, loans, and other assets
Indicate whether the statement is true or false
Physicians salaries increased substantially over the decade 1995-2005 from an average of $215,000 to $315,000 . What is the best explanation for this?
a. Physicians were smarter in 2005 than in 1995. b. The supply of physicians has increased. c. The supply of physicians has decreased. d. The demand for physicians has increased. e. The demand for physicians has decreased.
Answer the following questions true (T) or false (F)
1. If a country is producing efficiently and is on the production possibilities frontier, the only way to produce more of one good is to produce less of the other. 2. Consider a country that produces only two goods: kayaks and coconuts. Suppose it is possible for this country to increase its production of kayaks without producing fewer coconuts. In this case, its current output combination is efficient. 3. Any output combination outside a production possibilities frontier is associated with unused or underutilized resources.