When a country's currency depreciates
A) foreigners find that its exports are more expensive, and domestic residents find that imports from abroad are more expensive.
B) foreigners find that its exports are more expensive, and domestic residents find that imports from abroad are cheaper.
C) foreigners find that its exports are cheaper; however, domestic residents are not affected.
D) foreigners are not affected, but domestic residents find that imports from abroad are more expensive.
E) foreigners find that its exports are cheaper and domestic residents find that imports from abroad are more expensive.
E
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Arbitrage occurs when an entity purchases a good in the lower priced market and sells it at the same time in the highed priced market. The existance of trade costs would ___ opportunites of abitrage
a) lower b) not affect c) increase d) completly eliminate
At two points on an indifference curve,
a. the bundles of goods yield the consumer the same satisfaction. b. the consumer has the same income. c. the bundles of goods cost the consumer the same amount. d. the consumer has the same marginal rate of substitution.