If income in the United States rises relative to income in Japan, the yen should appreciate against the dollar, ceteris paribus.
Answer the following statement true (T) or false (F)
True
If income in the United States rises, Americans will purchase more Japanese goods, and this will increase the demand for the yen, causing it to appreciate.
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Based on the answer above, the price for peanut butter_____________ and the quantity demanded for peanut butter ____________
a. Uncertain; decreases b. Decreases; increases c. Decreases; uncertain d. Increases; uncertain
Which will not cause the supply curve to shift?
a. A change in the prices of other goods b. A technological change c. A change in the price of the good d. A change in resource costs
Which of the following statements regarding economic regulation is TRUE?
A) Economic regulation has failed by insisting that firms must be allowed to earn a normal rate of return. B) Rate-of-return regulation has been much more effective than cost-of-service regulation. C) Economic regulation deals only with rates of return, and not with prices. D) Economic regulation deals mainly with prices firms charge, but firms can alter their return by altering quality of service, effectively raising the price per constant-quality-unit.
Government payments made to domestic firms in order to encourage exports are called
A. bribes. B. tariffs. C. subsidies. D. quotas.