A currency depreciation in the foreign exchange market will:
A. Encourage imports into the country whose currency has depreciated
B. Discourage imports into the country whose currency has depreciated
C. Discourage exports from the country whose currency has depreciated
D. Encourage foreign travel by the citizens of the country whose currency has depreciated
B. Discourage imports into the country whose currency has depreciated
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The total gains from trade within a price system is
A) the area beneath the market demand curve and above the market clearing price plus the area above the market supply curve and beneath the market clearing price. B) the area beneath the market supply curve and above the market clearing price plus the area above the market demand curve and beneath the market clearing price. C) the area beneath the market demand curve and above the market clearing price minus the area beneath the market supply curve and beneath the market clearing price. D) always equal to zero.
Monopolistically competitive markets and monopoly market have a common characteristic: high barriers to entry.
Answer the following statement true (T) or false (F)
By raising or lowering the _______, the Fed changes the cost of money for banks, which impacts the incentive to borrow reserves.
A. Reserve ratio B. Discount rate C. Money multiplier D. Yield
The essential reason some species of whales have nearly been driven to extinction is that:
A. it is difficult to define and enforce property rights to whales. B. experienced whalers find it easy to catch whales. C. the demand for whales is extremely high. D. the price of whales is very low.