Which of the following could increase the supply of dollars in the foreign exchange market?
a. a lower inflation rate in foreign countries than in the U.S.
b. lower interest rates in foreign countries than in the U.S.
c. higher prices in the United States
d. a depreciation of other currencies
e. an appreciation of the dollar
B
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A relatively large increase in the cost of electricity would likely
a. result in a large increase in the use of gas for home use immediately. b. cause an immediate large decline in the use of electricity. c. increase the use of gas and decrease the use of electricity after a time lapse. d. cause an equal reduction in the use of electricity immediately.
National income is a measure of
A. How well the economy is doing on a gross basis. B. The income earned by the factors of production in producing GDP. C. The country's future productive capacity. D. The income received by the factors of production plus depreciation.