Suppose U.S. consumers start buying more English shoes and fewer U.S. shoes. What impact will this trend have on the foreign exchange market?
a. The U.S. overall demand for foreign exchange, and British pounds, in particular, will increase.
b. The U.S. overall demand for foreign exchange, and British pounds, in particular, will decrease.
c. The U.S. demand for British pounds will increase, but the overall demand for foreign exchange will probably decrease.
d. The U.S. demand for British pounds will decrease, but the overall demand for foreign exchange will probably increase.
A
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A) the quantity of capital used increases. B) technology advances. C) the stock of human capital increases. D) only the price level changes. E) the real wage rate is constant.
Unlike the 1920–21 episode, 1929–30 farm prices stood up fairly well when other prices fell
Indicate whether the statement is true or false
A new toll road was built in Southern California between San Juan Capistrano and Costa Mesa. On average, drivers save 10 minutes taking this road as opposed to the old road. The toll is $2; the fine for not paying the toll is $76
The probability of catching and fining someone who does not pay the toll is 90%. Individuals who take the road and pay the toll must therefore value 10 minutes at a minimum A) between $1.80 and $68.40. B) between $2 and $68.40. C) $1.80. D) between $1.80 and $76. E) more than $76.
Answer the following statement true (T) or false (F)
1) In maximizing profit, a firm will always produce that output where total revenues are at a maximum. 2) In the short run, a competitive firm will always choose to shut down if product price is less than the lowest attainable average total cost. 3) A competitive firm will produce in the short run so long as its price exceeds its average fixed cost. 4) The short-run supply curve slopes upward because producers must be compensated for rising marginal costs.