A depreciation of the U.S. dollar relative to the euro would tend to
A) increase U.S. imports from Germany.
B) increase U.S. exports to Germany.
C) decrease U.S. exports to Germany.
D) increase both U.S. imports from Germany and U.S. exports to Germany.
Answer: B
You might also like to view...
A characteristic of an oligopoly is:
a. mutual interdependence in pricing decisions. b. independent pricing decisions. c. lack of control over prices. d. none of these.
The frequent use of credit cards and easy access to automatic teller machines have caused:
a. the demand for money to increase. b. the money supply in the economy to decrease. c. the price level in the economy to decrease. d. the velocity of money to increase.
In Figure 1.1, which labeled point indicates that there are insufficient resources or technology to produce the combination of goods represented by that point? 
A. only A B. only B and C C. only D D. A, B, and C
Sulfur Dioxide Discharged (Tons)Firm AFirm B10$10,000$12,000911,00017,000813,00022,000716,00026,000620,00033,000
Table 9.8 shows the production cost for two utilities at different levels of sulfur dioxide emissions. Assume that the government issued 8 marketable pollution permits to each firm. If the two firms were to voluntarily trade pollution permits, how many permits would be swapped?
A. 0 B. 1 C. 2 D. 3