A depreciation of one's currency means that:
a. the country's exports will become more expensive.
b. it now requires less of this currency in exchange for one unit of another currency.
c. the country's imports will become less expensive.
d. it now requires more of this currency in exchange for one unit of another currency.
e. it now requires more units of other currencies in exchange for one unit of this currency.
d
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A marginal external cost of a product is equal to
A) what the producer has to pay to hire resources to produce another unit. B) the cost someone other than the producer incurs when another unit is produced. C) the cost the producer incurs to produce another unit. D) what the consumer must pay when he or she buys the good or service. E) None of these answers describes a marginal external cost.
To be successful in stabilizing AD, the application of a constant growth-rate rule for the money supply requires
A) a constant velocity of money. B) a steady and predictable rate of growth of the velocity of money. C) a steady and predictable rate of growth of the velocity of income. D) Both B and C are correct.
A study of expenditures on food in cities resulting in the following equation: Log E = 0.693 Log Y + 0.224 Log N where E is Food Expenditures; Y is total expenditures on goods and services; and N is the size of the family. This evidence implies:
a. that as total expenditures on goods and services rises, food expenditures falls. b. that a one-percent increase in family size increases food expenditures .693%. c. that a one-percent increase in family size increases food expenditures .224%. d. that a one-percent increase in total expenditures increases food expenditures 1%. e. that as family size increases, food expenditures go down.
Suppose an oil cartel has an agreement to restrict members' production in order to maintain a price of $30 per barrel. A single cartel member may want to cheat and exceed its quota so that it can:
A. reduce its costs. B. charge higher prices. C. make demand more inelastic. D. earn a bigger profit.