As the dollar exchange rate, e, increases, the quantity of dollars supplied in the foreign exchange market ________, and the quantity of dollars demanded in the foreign exchange market ________.
A. decreases; increases
B. increases; increases
C. decreases; decreases
D. increases; decreases
Answer: D
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Refer to the figure above. What is the social surplus if the market is in equilibrium?
A) $50 B) $75 C) $100 D) $150
Using the scenario above explain how this could have happened?
What will be an ideal response?
If a monopolist practices perfect price discrimination
A) consumers surplus will be equal to the deadweight loss. B) consumer surplus will be zero. C) the firm will break even in the long run. D) producer surplus will equal consumer surplus.
How will each of the following affect the steady-state growth rate of the standard of living? Assume the economy is currently in the steady state
a. an increase in the depreciation rate b. an increase in the growth rate of labor-augmenting technological change c. a decrease in the saving rate d. a decrease in the labor-force growth rate