Which of the following events would result in a greater demand for U.S. dollars in the foreign exchange market, ceteris paribus?
A. Higher tariffs imposed by the United States on imports.
B. An increase in interest rates in the United States.
C. Higher quotas imposed by the United States on imports.
D. An increase in interest rates in Japan.
Answer: B
You might also like to view...
If the price elasticity of demand for a product is 2.5, then a price increase of 1.5 percent decreases the quantity demanded by
A) 1.55 percent. B) 3.50 percent. C) 5.00 percent. D) 3.75 percent. E) 1.00 percent.
What is the assumption underlying public-choice theory?
A) Elected officials believe in cooperating with one another and they seek to avoid competition among themselves. B) The costs and benefits of being efficient are the same whether one is in the private sector or in the public sector. C) Individuals act within the political process to improve their own individual well-being. D) Resources in the public sector are not scarce.
Suppose a perfectly competitive firm faces the following cost and revenue conditions: ATC = $25.50; AVC = $20.50; MC = $25.50; MR = $28.50. The firm should
A) decrease output. B) increase output. C) shut down. D) continue to produce its current output.
The largest trading partner of the United States is
a. Mexico. b. Canada. c. the European Union. d. Japan.