If the equilibrium exchange rate between U.S. dollars and Japanese yen is $0.01 = 1 yen but currently the exchange rate is $0.0089 = 1 yen, then a __________ exists
A) shortage of dollars
B) surplus of dollars
C) surplus of yen
D) shortage of yen
E) b and d
E
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Union leaders who focus on increasing the size of their union will be aggressive in demanding higher wages
a. True b. False Indicate whether the statement is true or false
Within the AD/AS model, if consumers increase their savings and cut back on their spending, the
a. natural rate of unemployment will increase. b. real interest rate will decrease and, thereby, cushion the reduction in consumption spending. c. real interest rate will increase because of the higher rate of saving. d. long-run aggregate supply will decrease to restore equilibrium.
The modern monetarists believe that
A. V is very unstable. B. V never changes. C. Any changes in V are either very small or predictable. D. If M rises, V will fall by the same percentage.
If a change in government spending causes "crowding in" in an open economy, which of the following might increase in addition to consumption and investment?
A) unemployment B) net exports C) supply and demand D) stock of capital