When the U.S. interest rate rises relative to that in other counties, in the foreign exchange market the demand for U.S. dollars ________ and the supply of U.S. dollars ________
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
B
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Refer to Scenario 17.3. Moral hazard would be eliminated in this situation if
A) the insurer would always charge $300. B) the insurer would always charge $6000. C) the insurer could costlessly monitor whether a fire prevention program has been implemented, and adjust the premium upward if it is not. D) the insurer could costlessly monitor whether a fire prevention program has been implemented, and adjust the premium downward if it is not. E) the fire did not occur.
The figure above shows the demand and supply of dollars in the foreign exchange market. At a price of 2.40 Brazilian reals per dollar
A) there will be a shortage of dollars. B) $40 billion dollars will be demanded. C) $40 billion dollars will be supplied. D) there will be a surplus of dollars.
Most economists agree that the focus of fiscal policy is to
a. plan the economy. b. balance aggregate demand and aggregate supply. c. balance the federal budget. d. balance environmental needs and resources.
An decrease in the price of oranges would lead to a(n)
a. increased supply of oranges. b. increase in the prices of inputs used in orange production. c. a movement down and to the left along the supply curve for oranges. d. a movement up and to the right along the supply curve for oranges.