When the domestic currency buys fewer units of foreign currency, the
A) nominal exchange rate rises.
B) nominal exchange rate falls.
C) real exchange rate rises.
D) real exchange rate falls.
B
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If the official gold value of the Australian dollar changes from 470 Australian dollars per ounce to 493 Australian dollars per ounce, we can say that the Australian dollar has appreciated in value
a. True b. False Indicate whether the statement is true or false
Under which of the following situations would a seller prefer to incur the cost of improving the product quality?
a. If the increase in buyer's valuation for the improved product is higher than the cost of improving it. b. If the increase in the seller's opportunity cost of improving the product is higher than the price of the product. c. If the product improvement lowers the producer surplus. d. If the product improvement allows the seller to a break even.