Refer to the diagram. Line (1) reflects a situation where resource prices:
A. decline as industry output expands.
B. increase as industry output expands.
C. remain constant as industry output expands.
D. are unaffected by the level of output in the industry.
B. increase as industry output expands.
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The interest rate effect operates through
A) labor supply. B) government spending levels. C) the purchasing power of individuals' checking accounts. D) credit markets by changing borrowing costs.
When Americans decrease their demand for Japanese goods
A) the supply of dollars will fall, and the demand for yen will fall. B) the supply of dollars will rise, and the demand for yen will rise. C) the demand for dollars will rise, and the demand for yen will rise. D) the demand for dollars will fall, and the demand for yen will rise.