Which of the following activities, ceteris paribus, will cause increased foreign demand for U.S. dollars?

a. The World Cup soccer competition is held in Rio de Janeiro, Brazil.
b. The U.S. government decreases the tariffs on imports from Germany.
c. U.S. consumers develop a taste for teas exported from southeast Asia.
d. U.S. real interest rates abruptly rise higher than European real interest rates.


d. U.S. real interest rates abruptly rise higher than European real interest rates.

Economics

You might also like to view...

If company Z is receiving a government subsidy, the government is taking money from ____________ and giving it to company Z. If company Z is getting a tax deduction (instead of receiving a subsidy) then company Z is ______________________

A) taxpayers; paying more in taxes than it would without the tax deduction B) taxpayers; subsidizing the taxpayers C) Congress; paying more in taxes than it would without the tax deduction D) taxpayers; paying less in taxes than it would without the tax deduction

Economics

The slope of the short-run aggregate supply curve shows that:

A. as overall price levels decrease, firms are willing to produce more. B. firms are constrained to a certain level of output in the short run, regardless of the price. C. firms are constrained to a certain price in the short run, regardless of level of output. D. as overall price levels increase, firms are willing to produce more.

Economics

Some economists believe that the economy benefits from firms having market power. Which of the following is an argument that has been made to support this position?

A) Large firms are better able than small firms to spend funds on research and development required to develop new products. B) Competition is very rare in the U.S. economy and few new products are produced by smaller, competitive firms. C) Research has shown that the deadweight loss from monopolies is a small percentage of the value of production in the United States. D) Large firms can afford to lobby the U.S. government in order to impose restrictions on imports and reduce the outsourcing of jobs to other countries.

Economics

The outcome of the state of nature effects the payoff to the agent under a

A) fixed-fee contract. B) hire contract. C) contingent contract. D) All of the above.

Economics