What makes the demand for U.S. dollars change?
What will be an ideal response?
Three factors change the demand for U.S. dollars: the world demand for U.S. exports, the interest rate in the United States and other countries, and the expected future exchange rate. If world demand for U.S. exports increases, the demand for U.S. dollars increases. If the interest rate in the United States rises relative to interest rates in other countries, the demand for U.S. dollars increases. And if the expected future exchange rate rises, the demand for U.S. dollars increases.
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Figure 5-3
Assume the market consists of three consumers with the demand curves in Figure 5-3. At a price of 1, the total market demand is
A. 40. B. 80. C. 140. D. 150.
Which of the following purchases would be counted as a final good in the GDP calculation?
a. A family's purchase of a used car. b. A speculator's purchase of 100 shares of Apple Computer stock. c. A deli's purchase of bread for making its sandwiches. d. A business's purchase of new office equipment.
The _______ model lays out the _______ available to the economy.
A) demand and supply; alternatives B) production possibilities; price alternatives C) production possibilities; alternatives D) demand and supply; prices
Rationing through the price system
A) leads to an inefficient use of available resources. B) leads to high prices. C) works only with government interference. D) leads to an efficient use of available resources.