Refer to the diagram where D and S are the United States' demand for and supply of Swiss francs. At the equilibrium exchange rate, E, the United States' balance of payments is in equilibrium. A shift of the demand curve to D' might be the result of:
A. a relative decline in interest rates in Switzerland.
B. a reduction in the United States' relative price level.
C. a recession in the United States that slows its rate of growth.
D. a relative decline in interest rates in the United States.
D. a relative decline in interest rates in the United States.
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The "tragedy of the commons" refers to the phenomenon where
A) there is rivalry in consumption. B) people overuse a common resource. C) people do not internalize an externality. D) individuals are free riders.
In economics
A) costs are seen as all the previous opportunities B) costs are seen as the next best opportunity C) are measured in monetary units only. D) costs are only fixed.
An event that directly affects firms' costs of production and thus the prices they charge is called
a. a Phillips contraction. b. an inflationary spiral. c. a demand shock. d. a supply shock.
What can be expected to happen in a country that enacts trade barriers?
A. The rate of population growth will decrease. B. The rate of economic growth will decrease. C. The rate of immigration will increase. D. The rate of technological innovation will increase.