If the exchange rate between the dollar and Japanese yen is below the equilibrium exchange rate, there will be a ________ of dollars, and the exchange rate will ________
A) surplus; fall to the equilibrium level
B) shortage; change only when the supply curve shifts leftward
C) shortage; rise to the equilibrium level
D) surplus; rise to the equilibrium level
C
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Under a fixed exchange rate regime, a country that depletes its international reserves in an attempt to keep its currency from ________ will be forced to ________ its currency
A) depreciating; revalue B) depreciating; devalue C) appreciating; revalue D) appreciating; devalue
In the above scenario, the quantity of gas sold will
a. increase. b. decrease. c. remains the same. d. may increase or decrease.
The intention of a price ceiling is to help consumers by forcing a price that is below the equilibrium price. What is one unintended consequence of this policy?
A. Consumers face a shortage of the good and decreased consumer surplus. B. Foreign producers are hurt by the lower price and economic surplus is increased. C. Producers face a shortage or resources and economic surplus is decreased. D. Consumers face a shortage of the good and increased consumer surplus.
Expansionary monetary policy results in a shift of the aggregate demand curve to the right. The effect of the monetary policy on the aggregate demand is:
A. direct from the money supply to the aggregate demand. B. indirect through the short-term and long-term interest rates. C. indirect through the government expenditures. D. direct from the money supply to the aggregate supply.