Assume that the graphs show a competitive market for the product stated in the question below.

Europe and Asia both fall into deep economic recessions. What impact will this have on U.S. aggregate demand

A) None. A nation’s aggregate demand is only a3ected by its own economic conditions. B) U.S. aggregate demand will remain unchanged. C) U.S. aggregate demand will decrease. D) The U.S. aggregate demand curve will shi) to the right.

Which of the following has a production process that would be considered capital intensive?

A. A chorale B. Police detective work C. Auto manufacturing D. Serving food at a restaurant.

Suppose a U.S. citizen invests $1,000 to purchase a one-year Japanese bond that has an interest yield of 10 percent. If the dollar appreciates 20 percent against the Japanese yen by the maturity date, the dollar value of the proceeds is _____

a. $900 b. $1,100 c. $1,300 d. $1,500 e. $1,200

Suppose that today 1 British pound exchanges for $1.60. If next week 1 pound exchanges for $1.70, it is clear that

A. The dollar has appreciated relative to the pound. B. The pound has depreciated relative to the dollar. C. The dollar has depreciated relative to the pound. D. Both currencies have appreciated.