If the United States experiences an economic boom, compared to other countries, how will this affect the value of the U.S. dollar?
a. It will fall because other nations would be forced to raise their interest rates.
b. It will fall because the United States will import more goods and services, leading to an increased supply of dollars.
c. It will rise because U.S. GDP would be rising faster than other countries.
d. It will rise because the Fed will have to lower U.S. interest rates.
b
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In the above figure, a minimum wage of ________ would result in employment of ________
A) W2; L1 B) W2; L2 C) W1; L1 D) W1; L2
Because of their higher value of marginal product
A) the demand curve for high-skilled workers lies to the right of the demand curve for low-skilled workers. B) the demand curve for high-skilled workers lies to the left of the demand curve for low-skilled workers. C) the supply curve for high-skilled workers lies to the right of the supply curve for low-skilled workers. D) the demand curve for high-skilled workers lies to the left of the supply curve for low-skilled workers.
Exports are goods and services that are produced:
A. in other countries and consumed domestically. B. domestically and consumed in other countries. C. and consumed in other countries. D. and consumers domestically.
Refer to Figure 6.4. What area represents the decrease in consumer surplus when the price of computers increases from $1,000 to $1,500?
A. b
B. b + e
C. b + c
D. a + b