If the exchange rate (dollars per unit of foreign currency) has decreased because of a shift of the supply curve, the demand curve, or both, we say there has been a(n)
a. appreciation of the foreign currency
b. depreciation of the foreign currency
c. revaluation of the foreign currency
d. devaluation of the foreign currency
e. fixing of the foreign currency
B
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Suppose a positive technological change in the production of disease-resistant corn caused the price of corn to fall. Holding everything else constant, how would this affect the market for wheat (a substitute for corn)?
A) The demand for wheat would decrease and the equilibrium price of wheat would decrease. B) The demand for wheat would increase because consumers could afford to buy more wheat and corn. C) The demand for wheat would decrease and the equilibrium price of wheat would increase. D) The supply of wheat would increase and the equilibrium price of wheat would decrease.
Public choice refers to how
a. much publicity a government-sponsored project receives b. members of government make choices that promote their own self-interest (to keep their jobs) c. the public makes choices about what types of goods to buy d. private decisions often end up becoming public e. supply and demand curves reflect public opinion