In the foreign exchange market, how does a fall in the U.S. interest rate affect the supply of dollars?
What will be an ideal response?
The fall in the U.S. interest rate increases the supply of dollars as U.S. residents supply more dollars in order to obtain foreign currency with which to buy foreign assets that now have relatively higher interest rates.
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Which of the following would one expect if there were no trade in goods but resources were free to move among countries?
a. Labor will immigrate from the capitalabundant country. b. Labor will emigrate to the capitalabundant country. c. Labor will emigrate to the capitalscarce country. d. Labor will immigrate from the capitalscarce country.
According to Rosenberg (2004), the U.S. economy between the Civil War and World War II was relatively poor in which of its productive resources?
(a) Land (b) Labor (c) Capital (d) Entrepreneurial talent