Why does the supply curve of Japanese yen slope up?
What will be an ideal response?
Japanese residents supply yen when they want to buy U.S. goods and services. The higher the price of the yen, the lower the Japanese price for the dollar. So, as the yen price of the dollar falls, Japanese residents demand more dollars and supply more yen.
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For resource use to be allocatively efficient, when the marginal benefit of a slice of pizza exceeds the marginal cost,
A) more slices of pizza should be produced. B) fewer slices of pizza should be produced. C) no more slices of pizza should be produced. D) allocative efficiency is reached only if the marginal benefit exceeds the marginal cost by as much as possible. E) None of the above answers is correct.
In the DMP model, a decrease in productivity
A) decreases the unemployment rate. B) reduces the vacancy rate. C) increases the unemployment rate. D) increases the size of the labor force.
Compared to the profit-maximizing outcome, average cost pricing in natural monopoly leads to
a. all of the following b. a higher price c. decreased consumer surplus d. the elimination of economic profit e. less output
Calculate GDP for a country with investment of $2 trillion, government purchases of $3 trillion, capital depreciation of $1.5 trillion, consumption of $10 trillion, exports of $3.4 trillion, and imports of $3.9 trillion