How does rapid economic growth at home affect foreign exchange markets?
What will be an ideal response?
It increases home country demand for foreign currencies as it increases imports. The home currency depreciates.
Economics
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Suppose a tax of $10 per unit is imposed on this market. What will be the new equilibrium quantity in this market?
A. less than 70 units B. greater than 100 units C. 70 units D. between 70 units and 100 units
Economics
Which of the following is not reflected in the constant term associated with the marginal propensity to consume?
A) The level of C if Y were zero B) People's consumption with zero income C) All other influences on consumption besides income D) All of the above are reflected in the constant term.
Economics