In considering pounds and dollars we can say that when the dollar rate of exchange for the pound rises
A. the pound rate of exchange for the dollar will fall.
B. the pound rate of exchange for the dollar will also rise.
C. the pound rate of exchange for the dollar may either fall or rise.
D. American net exports to Britain will tend to fall.
A. the pound rate of exchange for the dollar will fall.
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Answer the following statement(s) true (T) or false (F)
1. The substitution effect insures that anytime there is a change in the price of a good, the quantity demanded along a compensated demand curve also changes. 2. The (ordinary) demand curve for a normal good must be downward sloping. 3. An inferior good is only Giffen when the substitution effect exceeds the income effect. 4. An ordinary demand curve contains both substitution and income effects, while a compensated demand curve contains only income effects. 5. The income elasticity of demand is equal to the slope of the Engel curve.
Refer to Table 9-1. Select the statement that accurately interprets the data in the table
A) Sandy has a comparative advantage in dog grooming. B) Sandy has a comparative advantage in dog bathing. C) Linda has a comparative advantage in dog grooming and dog bathing. D) Linda has a comparative advantage in dog grooming.
The difference between a change in quantity demanded and a change in demand is that a change in:
a. quantity demanded is caused by a change in a good's own current price, while a change in demand is caused by a change in some other variable, such as income, tastes, or expectations. b. demand is caused by a change in a good's own current price, while a change in quantity demanded is caused by a change in some other variable, such as income, tastes, or expectations. c. quantity demanded is a change in the amount people actually buy, while a change in demand is a change in the amount they want to buy. d. A change in demand and a change in quantity demanded are the same thing.
The cross-price elasticity of demand is the percentage change in the quantity of good A that is demanded as a result of a percentage change in the price of good B.
Select whether the statement is true or false. A. True B. False