Which of the following situations will cause the demand for U.S. dollars to rise in the foreign exchange market?
a. The price level in the United States rises faster than the price level in the United Kingdom.
b. The interest rate in the United Kingdom falls while the interest rate in the United States remains constant.
c. The real GDP in the United States grows while the real GDP in the United Kingdom remains constant.
d. The tax rate in the United States rises while the tax rate in the United Kingdom does not change.
.B
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The demand for seats in 10 a.m. classes at the university is higher than the demand for seats in 8 a.m. classes. The supply of seats is fixed. If the university can only charge a single price and wishes to maximize the total number of seats purchased during the day, it should set the price
A) at equilibrium for 8 a.m. classes. B) at equilibrium for 10 a.m. classes. C) midway between the two equilibria. D) below either 8 a.m. or 10 a.m. equilibrium price.
Table 1.2 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S. capacity, ceteris paribus. Complete the table by calculating the required opportunity costs for both the B-1 and Stealth bombers. Table 1.2Production Possibilities for BombersCombinationNumber of B-1 BombersOpportunity cost(Foregone Stealth)Number of Stealth BombersOpportunity cost (Foregone B-1)A20NA195 B35 180 C45 150 D50 100NAThe highest opportunity cost in Table 1.2 for B-1 bombers in terms of Stealth bombers is
A. 33 B-1 bombers B. 10 B-1 bombers C. 10 Stealth bomber per B-1 D. 10 Stealth bombers per B-1