If the demand for U. S. dollars goes down, the exchange rate will
A) increase and, as a result, net exports in the United States will decrease.
B) decrease and, as a result, net exports in the United States will increase
C) increase and, as a result, net exports in the United States will increase
D) decrease and, as a result, net exports in the United States will decrease
Ans: B) decrease and, as a result, net exports in the United States will increase
You might also like to view...
Higher relative wages for labor tends to
A) increase the supply of labor. B) decrease the demand for labor. C) encourage firms to find substitutes, such as automation. D) accomplish all of the above.
Refer to the table below. If demand decreased by 4 units at each price and supply decreased by 2 units at each price, what would the new equilibrium price and quantity be?
A. $3 and 5 units
B. $4 and 4 units
C. $5 and 5 units
D. $6 and 6 units
The concept of purchasing power parity illustrates the relationship between the national price levels and exchange rates in the long-run.
Answer the following statement true (T) or false (F)
According to the Laffer curve, we know with certainty that an increase in the tax rate will
A. cause tax revenue to increase. B. cause tax revenue to increase, decrease, or remain unchanged. C. have no effect on tax revenue. D. cause tax revenue to decrease.