Explain three factors that would cause the dollar to appreciate.
What will be an ideal response?
An increase in the demand for U.S. exports would cause the dollar to appreciate, since more dollars would be demanded. An increase in U.S. interest rates would raise the dollar’s value, as foreign countries demand more dollars to purchase U.S. securities. A third factor is an increase in the purchase of U.S. capital goods. Additionally, low U.S. inflation compared to other countries would increase demand for U.S. exports and decrease demand for imports.
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If Lisa spends her income on veggie burgers and pints of soy milk and the price of veggie burgers is three times the price of a pint of soy milk, then when Lisa maximizes her utility she will buy
A) three times as many pints of soy milk as veggie burgers. B) both goods until the marginal utility of veggie burgers is three times the marginal utility of soy milk. C) three times as many veggie burgers as pints of soy milk. D) both goods until the marginal utility of a pint of soy milk is three times the marginal utility of veggie burgers.
Derived demand refers to
a. demand curves derived from utility functions b. an individual demand curve estimated from a market demand curve c. a market demand curve estimated from individual demand curves d. demand for a resource derived from the demand for the product produced by that resource e. demand for a product derived from the demand for the resource used to make that product
The aggregate supply and aggregate demand model describes the interaction of which macroeconomic variables?
A. Output and the price level B. Employment and immigration C. Prices and immigration D. Output and number of sellers
Shift to the left or right for supply:price of product believed to rise in the future
What will be an ideal response?