What makes the supply of U.S. dollars change?
What will be an ideal response?
Three factors change the supply of U.S. dollars: U.S. demand for imports, the interest rate in the United States and other countries, and the expected future exchange rate. If U.S. demand for imports increases, the supply of U.S. dollars increases. If the interest rate in the United States falls relative to interest rates in other countries, the supply of U.S. dollars increases. And if the expected future exchange rate falls, the supply of U.S. dollars increases.
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When a society achieves production efficiency, it is
A) definitely producing at a point on its PPF. B) perhaps producing at a point on its PPF and perhaps producing at a point inside its PPF. C) definitely producing that combination of goods and services that society values most highly. D) not fully employing all of its available resources to produce goods and services. E) enjoying a free lunch.
Since income and substitution effects point in the same direction for normal goods, the leisure demand curve will be shallower if leisure is a normal good than if leisure is an inferior good.
Answer the following statement true (T) or false (F)
Ben's Peanut Shoppe suffers a short-run loss. Ben will not choose to shut down if
A) his Shoppe's total revenue exceeds his capital costs. B) his Shoppe's total revenue exceeds his implicit costs. C) his Shoppe's total revenue exceeds his fixed cost. D) his Shoppe's total revenue exceeds his variable cost.
The net capital outflow is the net flow of:
A. capital goods owned outside a country. B. funds invested outside of a country. C. capital goods owned within a country. D. funds invested within a country.