If the interest rate rises and the supply of dollars in the market for foreign currency exchange shifts left, then the price must have
a) dropped by less than 10 percent.
b) remained constant.
c) risen.
d) dropped by more than 90 percent.
Answer: c) risen
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The impact of technology on health care has
A) provided for a higher quality of life. B) increased health care costs. C) contributed to increased life expectancy. D) All of the above are correct.
The concept of "an invisible hand" led Adam Smith to believe that
a. if each person looks out for himself or herself, then chaos will inevitably ensue. b. pursuit of self-interest promotes economic well-being for society as a whole. c. governmental rule actually results in greater good than is apparent at the time. d. traditional religion is an appropriate guide for human behavior. e. All of the above are correct.
If Spain sells soccer balls to the United States, then Spain:
A. has an absolute advantage over the United States in making soccer balls. B. has the ability to produce soccer balls at a lower opportunity cost than the United States can. C. does not have any trade barriers with the US. D. can produce more soccer balls than the United States given the same resources.
Money serves as a medium of exchange when:
A. it is a means of holding wealth. B. there is direct trade of goods and services. C. it is a basic measure of economic value. D. it is used to purchase goods and services.