If people expect the dollar to depreciate, then the
A) demand for dollars will decrease, the supply of dollars will increase, and the exchange rate will fall.
B) demand for dollars will decrease, the supply of dollars will not change, and the exchange rate will fall.
C) supply of dollars will increase, the demand for dollars will not change, and the exchange rate will fall.
D) demand for dollars will increase, the supply of dollars will decrease, and the exchange rate will rise.
A
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Which of the following statements about the economically efficient level of air pollution is correct?
A) The economically efficient level of pollution occurs where the marginal cost of pollution reduction equals the marginal social benefit of reduction. B) The economically efficient level of pollution occurs where total benefits of pollution reduction are maximized. C) The economically efficient level of pollution is zero. D) The economically efficient level of pollution occurs where all social costs equal all social benefits.
European firms wishing to purchase American goods and services are ________ the foreign exchange market.
A. suppliers of U.S. dollars in B. demanders of U.S. dollars in C. demanders of Euros in D. supplied dollars by the European Central Bank for use in