The demand for foreign currency in the United States
a. increases as the level of imports increases
b. increases as the level of exports increases
c. decreases with the lowering of the inflation rate abroad
d. decreases as foreign interest rates rise
e. is unaffected by U.S. demand for goods and services abroad
A
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Refer to Figure 4-1. If the market price is $1.50, what is Arnold's consumer surplus?
A) $1.50 B) $2.25 C) $3.00 D) $4.75
Which of the following is a true statement about real and nominal GDP?
A) Nominal GDP is a better measure than real GDP in comparing changes in the production of goods and service year after year. B) If real GDP increases from one year to the next, we know that production of goods and services has risen. C) Increases in average prices do not affect the calculation of nominal GDP. D) If nominal GDP increases from one year to the next, we know that production of goods and services has risen.