The ________ the expected profit from holding a foreign currency, the greater is the ________ in the foreign exchange market
A) larger; quantity demanded of dollars
B) smaller; quantity demanded of foreign currency
C) larger; quantity supplied of dollars
D) None of the above is correct because the expected profit has nothing to do with the supply and demand for dollars or foreign currency.
C
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An economy is operating with optimum efficiency if
a. the price of the product is greater than marginal cost. b. the production of more of commodity A entails the production of less of commodity B. c. marginal cost of output is greater than marginal utility of output. d. an increase in output would result in a decrease in average cost per unit.
On the supply curve:
A. both quantity and price go on the horizontal axis. B. quantity goes on the horizontal axis and price goes on the vertical axis. C. quantity goes on the vertical axis and price goes on the horizontal axis. D. it doesn't matter which axis price and quantity are placed on.