A decrease in the demand for dollars on the foreign exchange market, all else equal, will result in:
A) appreciation of the U.S. dollar and depreciation of the foreign currency.
B) appreciation of the U.S. dollar and appreciation of the foreign currency.
C) depreciation of the U.S. dollar and depreciation of the foreign currency.
D) depreciation of the U.S. dollar and appreciation of the foreign currency.
Ans: D) depreciation of the U.S. dollar and appreciation of the foreign currency.
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An expansion occurs when ________, when ________, or when both of these occur.
A. potential output grows slowly; actual output equals potential output B. potential output grows slowly; actual output rises above potential output C. potential output grows rapidly; actual output equals potential output D. potential output grows rapidly; actual output rises above potential output.
A natural monopoly is one that arises from
A) patent law. B) economies of scale. C) copyright law. D) any government-imposed barrier to entry. E) mergers.
The federal government
a. runs a deficit when tax revenues are greater than government purchases. b. runs a surplus when tax revenues are smaller than government purchases. c. runs a deficit when tax revenues are smaller than government outlays. d. runs a surplus when tax revenues are greater than government purchases. e. runs a surplus when tax revenues are smaller than transfer payments.
The supply curve for innovative activities
A. slopes upward because as the price of innovation rises, people who would otherwise become scientists begin to go into other occupations like law or business. B. slopes downward because as the price of innovation rises, people who would otherwise become scientists begin to go into other occupations like law or business. C. slopes downward because as the price of innovative activities rises, people will want to consume fewer innovative services. D. slopes upward because as the price of innovation rises, more people and capital will be attracted into innovative activities.