If U.S. export contracts are written in terms of foreign currency and import contracts are denominated in domestic currency, a devaluation of the dollar during the currency contract period
A) should increase the dollar value of exports.
B) should not have any effect on the dollar value of U.S. imports.
C) must increase the BOT.
D) All of the above
D
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Suppose the supply of dollars decreased from S2 to S1 in Figure 36.3. As a result of this change,
A. The Swiss franc will gain value worldwide. B. A trade deficit will be created in Switzerland. C. U.S. computer exports to Switzerland will be lower-priced in dollars. D. Swiss chocolate imports to the United States will be lower-priced in dollars.
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.
U.S. antitrust laws view monopolies as undesirable because
A. monopolies restrain trade and promote inefficiencies. B. monopolies create inferior products. C. monopolies produce only cheap, low quality goods. D. monopolies produce only capital goods.
A major reason for creating the European Monetary System was to
A) create a single currency. B) unify banking laws and permit cross-border investment. C) avoid competitive devaluations. D) reduce the costs of changing currencies. E) eliminate the need for central banks.