Refer to Figure 36.4 for the dollar-yen foreign exchange market. A decrease in demand from D1 to D2 could have been caused by
A. A poor performance by the Japanese stock market compared to the U.S. stock market.
B. A quota placed on Japanese television imports to the United States.
C. A decrease in the demand for U.S. computers.
D. An increase in the number of Japanese visitors to the United States.
Answer: C
You might also like to view...
How is money market equilibrium determined in the short run?
What will be an ideal response?
Suppose that the wage for drive-thru clerks is $7 an hour at Burger King and $6.50 at McDonald's. The jobs are alike in all other respects. We would expect
a. an increase in the supply of and demand for drive-thru clerks at Burger King b. an increase in the supply and a decrease in the demand for drive-thru clerks at Burger King c. a decrease in the supply of drive-thru clerks at Burger King but no change in demand d. an increase in the supply of drive-thru clerks at Burger King but no change in demand e. a decrease in the supply of and demand for drive-thru clerks at Burger King
Assume that business investment spending rises, and the increase is funded by greater borrowing in the capital markets. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the reserves account and monetary base in the context of the Three-Sector-Model? a. The reserves account becomes more positive (or less negative) and monetary base
falls. b. The reserves account becomes more negative (or less positive) and monetary base rises. c. The reserves account and monetary base remain the same. d. The reserves account becomes more negative (or less positive) and monetary base remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
According to most economists, the development of markets is:
A. both a necessary and a sufficient condition for development. B. a sufficient condition for development but not a necessary condition. C. a necessary condition for development but not a sufficient condition. D. neither a necessary nor a sufficient condition for development.