When numerous Japanese companies buy $100,000,000 worth of goods or services from U.S. producers, ceteris paribus, there will be
A. no change in values of the currencies.
B. depreciation of the dollar against the yen.
C. depreciation in the value of the yen against the dollar.
D. appreciation in the value of the yen against the dollar.
Answer: C
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The number of times per year that a dollar is spent on final goods and services defines
A) the income velocity of money. B) the money supply. C) the price index. D) GDP.
"The duopolists' dilemma occurs when firms in a duopoly coordinate their decisions to achieve the best possible outcome." Is the previous statement correct or incorrect? Why?
What will be an ideal response?
The members of a society can assign tasks according to ability and distribute benefits in accordance with need only
A) if the government controls the economy. B) if they have a workable procedure for assessing abilities and needs. C) in a socialist or, more likely, a communist society. D) when there are enough of them to assure competent performance of all necessary tasks. E) when they are committed to equity as well as efficiency.
Which exchange rate system requires an immediate response by a government to counter all market forces on exchange rates?
A. The floating exchange rate system B. The fixed exchange rate system C. The managed float exchange rate system D. The Bretton-Woods exchange rate system