The U.S. demand for British pounds is:
A. downsloping because a higher dollar price of pounds means British goods are cheaper to
Americans.
B. downsloping because a lower dollar price of pounds means British goods are more
expensive to Americans.
C. upsloping because a lower dollar price of pounds means British goods are cheaper to
Americans.
D. downsloping because a lower dollar price of pounds means British goods are cheaper to
Americans.
D. downsloping because a lower dollar price of pounds means British goods are cheaper to
Americans.
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Which of these statements about economic models is correct?
a. For economists, economic models provide insights about the world. b. Economic models are built with assumptions. c. Economic models are often composed of equations and diagrams. d. All of the above are correct.
Both the marginal cost and the average variable cost curves are U-shaped. At the minimum point on the average variable cost curve, the marginal cost must be:
A. greater than the average variable cost. B. less than the average variable cost. C. equal to the average variable cost. D. at its minimum.
A complicating factor in international trade is that
A. barter is the basis for trade between countries; money is not used. B. gold is used for payments; there are no international payments without gold. C. many other countries prefer to use the U.S. dollar as currency, causing monetary shortage in the United States. D. trade between countries requires different currencies rather than one currency.
The income—expenditure identity says that
A) Y = C + S + T. B) Y = C + I + G. C) Y = C + I + G + NX. D) Y = C + I + G + NX + CA.