Suppose that U.S. incomes rise relative to British incomes. Then,
a. the dollar will appreciate and the pound will depreciate
b. the dollar will depreciate and the pound will appreciate
c. the dollar will depreciate and the pound's value will remain constant
d. the dollar will appreciate and the pound's value will remain constant
e. neither the dollar nor the pound will be affected
B
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Which of the following is true (assume the small country case)?
A) With a quota, an increase in demand leads to a higher price and more imports. B) With a tariff, an increase in demand leads to a higher price and more imports. C) With either a tariff or a quota, an increase in demand leads to a higher price and more imports. D) None of the above are true.
As a general rule, an increase in the capital available to a society
a. reduces the slope of the production possibilities frontier, making it shallower. b. increases the slope of the production possibilities frontier, making it steeper. c. shifts the production possibilities frontier outward, away from the origin. d. shifts the production possibilities frontier inward, toward the origin. e. makes the production possibilities frontier more bowed out.