The exchange rate of the dollar relative to other currencies is determined by market forces. When equilibrium is present in the exchange rate market,
A) the purchases of Americans from foreigners will be equal to the sales of Americans to foreigners.
B) imports from foreigners will create jobs in other countries but employment in the United States will decline by an equal amount.
C) the gains of Americans from international trade will be just equal to the gains of foreigners from the trade.
D) Americans will gain from the international trade only if foreigners lose an equal amount.
A) the purchases of Americans from foreigners will be equal to the sales of Americans to foreigners.
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Pollution is an example of a
A) negative externality B) positive externality. C) private cost. D) public good.
Answer the following statements true (T) or false (F)
1) The "sticky price" model is the only one used by macroeconomists. 2) (Consider This) The term "economic investment" refers only to money spent purchasing newly created capital goods such as factories, tools, and warehouses. 3) (Consider This) If a farmer purchases 10 acres of farmland from a neighboring farmer, this would be considered an economic investment. 4) (Consider This) If Ford Motor Company purchases factory equipment previously used by General Motors, this would be considered an economic investment.