Assume that there is an unexpected increase in the demand for U.S. dollars in Switzerland. If the foreign currency price of the U.S. dollar is fixed, the U.S. Federal Reserve must intervene in the foreign exchange market such that:
a. the supply of U.S. dollars increases.
b. the U.S. demand for the Swiss franc falls.
c. the supply of U.S. dollars decreases.
d. Swiss imports from the United States are reduced.
e. the Swiss currency is devalued.
a
You might also like to view...
Suppose the marginal product of labor (MPL) is greater than the real wage. If the real wage remains constant, then we should expect ________
A) an increase in employment and decrease in the MPL B) an increase in the supply of labor and decrease in the MPL C) an increase in leisure and no change in the MPL D) an increase in the supply of labor and no change in the MPL
The social well-being of a country
A. Is best measured by per capita GDP. B. Is measured by more than changes in real GDP. C. Always increases when real GDP increases. D. Decreases when real GDP decreases.
Which of the following will most likely happen when better technology is used in production?
A. an upward movement along the production possibilities curve B. a downward movement along the production possibilities curve C. an outward shift of the production possibilities curve D. an inward shift of the production possibilities curve
Assume Robbie's Robots operates in a perfectly competitive market producing 3,000 robots per day. At this output level, the selling price is $800 per robot and the marginal cost is $625 per robot. To maximize profits, Robbie's Robots should
A. make no adjustments as they are already maximizing their profits. B. increase their output. C. decrease their output. D. stop producing since it is earning a loss.