Suppose that today 1 British pound exchanges for $1.60. If next week 1 pound exchanges for $1.70, it is clear that
A. The dollar has appreciated relative to the pound.
B. The pound has depreciated relative to the dollar.
C. The dollar has depreciated relative to the pound.
D. Both currencies have appreciated.
Answer: C
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The figure above shows the production possibilities frontier for a country. In order for it to move from producing at point A to producing at point B, the country would need to
A) decrease SUV production by 1 million. B) decrease SUV production by 3 million. C) decrease SUV production by 4 million. D) decrease compact car production by 3 million. E) acquire more resources and/or more advanced technology.
The above figure shows the apartment market in Big City. A rent ceiling of $1400 per month would
A) create a black market. B) increase search activity. C) not affect the market. D) create a surplus of apartments.