Refer to the graph above. If more Japanese tourists decide to visit the United States for their vacations:
Assume that Japan and the United States are engaged in a system of flexible exchange rates.
A. The yen will appreciate and the U.S. dollar will depreciate
B. The yen will depreciate and the U.S. dollar will appreciate
C. The yen and the U.S. dollar will appreciate
D. The yen and the U.S. dollar will depreciate
B. The yen will depreciate and the U.S. dollar will appreciate
You might also like to view...
Which of the following statements correctly describes the relationship between the size of the deadweight loss and the amount of tax revenue as the size of a tax increases from a small tax to a medium tax and finally to a large tax?
a. Both the size of the deadweight loss and tax revenue increase. b. The size of the deadweight loss increases, but the tax revenue decreases. c. The size of the deadweight loss increases, but the tax revenue first increases, then decreases. d. Both the size of the deadweight loss and tax revenue decrease.
Implicit cost refers to:
A. salary paid to the factors of production. B. any increase in the value of the assets owned by the firm. C. the amount a firm receives for selling its product or service. D. the opportunity cost of factors of production provided by the owners of the firm.
The largest liability of the Fed from those on this list is
A. loans to depository institutions. B. mortgage-backed securities. C. U.S. Treasury securities. D. currency outstanding.
The consolidation in the financial industry into fewer and larger firms:
A. Progressed further in the Financial Crisis of 2007-2008 B. Halted in the Financial Crisis of 2007-2008 C. Slowed down in the Financial Crisis of 2007-2008 D. Was reversed in the Financial Crisis of 2007-2008