Which of the following is most likely to cause a leftward shift in the demand curve for the Chinese yuan in exchange of the U.S. dollar?
A) An increase in the demand for U.S. products in China
B) A decrease in the demand for Chinese products in the U.S.
C) A decrease in the demand for U.S. products in China
D) An increase in the demand for Chinese products in the U.S.
B
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Assume toys are produced using only labor and wood. Which of the following best describes the cost of producing toys?
a. The number of dollars that the laborer spends to purchase the wood. b. The amounts of labor and wood used in the production process. c. The alternative uses that could be found for the labor and wood. d. The monetary value of the labor and wood used.
Everything else equal, if the Fed decided to fix the euro/dollar exchange rate, what would be the impact on the money supply in the U.S. if the euro started to decline in value and why?
What will be an ideal response?
Last year country A had a nominal GDP of $600 billion, a GDP deflator of 150 and a population of 40 million. Country B had a nominal GDP of $720 billion, a GDP deflator of 120 and a population of 50 million. From these numbers which country is likely to have had the higher standard of living?
a. Country A because it had the higher nominal GDP per person. b. Country B because it had the higher nominal GDP per person. c. Country A because it had the higher real GDP per person. d. Country B because it had the higher real GDP per person.
If there is a 5 percent increase in the CPI, then there will most likely be
A) a more than 5 percent rise in the cost of living because of the introduction of new goods. B) a 5 percent rise in the cost of living. C) a less than 5 percent rise in the cost of living because of consumers substituting away from goods whose relative prices rise towards other goods. D) a more than 5 percent rise in the cost of living because of consumers substituting away from goods whose relative prices rise towards other goods. E) a less than 5 percent rise in the cost of living because of falling quality of goods over time.