If the dollar rises in value against other currencies, this will
A. lower our trade deficit.
B. make our exports more expensive and our imports cheaper.
C. make our exports cheaper and our imports more expensive.
D. make both our exports and imports more expensive.
B. make our exports more expensive and our imports cheaper.
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Students who talk loudly with each other in class
A) create an externality because other students cannot follow the lecture as well. B) disturb nobody. C) benefit the other students in class because they engage in conversation. D) only create an externality if they talk about something unrelated to class.
When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
In normal times, the actual money multiplier in the United States is:
A. sometimes negative during a recession. B. approximately equal to 10. C. approximately equal to 3. D. 0 in the long run and 3 in the short run.
The term consumer sovereignty means that:
A. Government is responsible for protecting consumers' interests B. What is produced is ultimately determined by what consumers buy C. There are no limits on what consumers may buy in a market system D. Producers have strong control over what consumers buy