The unemployment rate is an example of a Federal Reserve

Suppose U.S. consumers start buying more English shoes and fewer U.S. shoes. What impact will this trend have on the foreign exchange market?

a. U.S. demand for foreign exchange, in general, and British pounds, in particular, will increase. b. U.S. demand for foreign exchange, in general, and British pounds, in particular, will decrease. c. U.S. demand for British pounds will increase, but the demand for foreign exchange will probably decrease. d. U.S. demand for British pounds will decrease, but the demand for foreign exchange will probably increase. e. There is no effect on foreign exchange.

As the period for firms to expand output is lengthened, the elasticity of the market supply curve will:

a. approach zero. b. increase. c. decrease. d. remain the same since time does not affect the elasticity of market supply.