Which of the following is most likely to lead to an increase in the demand for U.S. dollars in the foreign exchange market?
a. U.S. firms purchasing raw materials from Japan
b. U.S. speculators expecting the value of the German mark to rise
c. The Fed intervening in the foreign exchange market and devaluing the dollar
d. Speculative outflows of money from the United States to Britain because of higher interest rates in Britain
e. Japanese cars becoming more popular in the United States
c
You might also like to view...
Is there any difference between fining people who put contaminants into the atmosphere and charging fees for putting contaminants into the air?
A) Not if the fee and the fine are the same per quantity of contaminant. B) Not if the fee per quantity of contaminant is the same as the fine multiplied by the probability of "getting caught." C) Only in the language or rhetoric, but not in the incentives the laws create. D) Yes, because a fee constitutes social authorization while a fine expresses social disapproval.
"Because firms in an oligopoly are so large, they do not need to consider each other's actions." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?
The substitution effect of a price change refers to
A) the change in quantity demanded that results from a change in price making a good more or less expensive relative to other goods that are substitutes. B) the shift of a demand curve when the price of a substitute good changes. C) the movement along the demand curve due to a change in purchasing power brought about by the price change. D) the shift in the demand curve due to a change in purchasing power brought about by the price change.
Refer to the graph below showing the revenue curves for a monopolist. At what output level is demand inelastic?
A. Q1
B. Q2
C. Q3
D. Q4