Under a system of flexible exchange rates, a decrease in demand for a nation's currency in the foreign exchange market will:
a. make it less expensive for foreigners to buy the nation's goods
b. make it more expensive for the nation to import goods.
c. cause the nation's balance on current account to shift toward a deficit.
d. all of the above
d
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The data in the table above are the U.S. balance of payments. The data show that
A) the United States has a current account surplus. B) the United States has a capital and financial account surplus. C) The United States loaned $400 billion to the rest of the world. D) Both answers A and B are correct.
Consider the following economic agents:
a. the government b. consumers c. producers Who, in a market economy, decides what goods and services will be produced with the scarce resources available in that economy? A) producers B) consumers and producers C) the government, consumers, and producers D) consumers E) the government
Which of the following would most likely shift the aggregate demand curve to the right?
A. An increase in stock prices that increases consumer wealth. B. Increased fear that a recession will cause workers to lose their jobs. C. An increase in personal income tax rates. D. A reduction in household borrowing because of tighter lending practices.
________ present(s) a barrier to entry in the DVD player market.
A. Ownership of a scarce resource B. Network externalities C. Economies of scale D. A government franchise