When the value of the dollar changes from £0.5 to £0.75, then the British pound has ________ and the U.S. dollar has ________
A) appreciated; appreciated
B) depreciated; appreciated
C) appreciated; depreciated
D) depreciated; depreciated
B
You might also like to view...
Why does an external cost lead to inefficient overproduction?
What will be an ideal response?
The increase in the currency ratio during World War II was due to
A) bank panics. B) a drop in the rate of interest paid on checking deposits. C) the spread of ATMs. D) high taxes and illegal activities.
Suppose that during a given time period the implicit cost for a business was $1,000 and that the explicit cost was $5,000. Also suppose that the firm sold 1,000 units of its products at $5 per item. We can conclude that the firm's
A) accounting profit was $5,000, and its economic profit was $0. B) accounting and economic profits were both $0. C) accounting profit was $0, and economic profit was $1,000. D) accounting profit was $0, and economic profit was -$1,000.
According to the graph shown, if the economy opens itself to free trade, producer surplus will:
This graph demonstrates the domestic demand and supply for a good, as well as a quota and the world price
for that good.
A. decrease to area I.
B. decrease to area EI.
C. increase to EI.
D. increase to ABCDEFGH.