Refer to the graph below. An increase in the supply of yen will result in:
Assume that Japan and the United States are engaged in a system of flexible exchange rates.
A. An appreciation of the yen
B. An appreciation of the U.S. dollar
C. A depreciation of the U.S. dollar
D. An increase in the dollar price of yen
B. An appreciation of the U.S. dollar
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The Keynesian model is based on the idea that
A) both consumption and saving are directly related to disposable income. B) saving depends only on the interest rate. C) consumption is unrelated to the level of real Gross Domestic Product (GDP). D) both consumption and saving are unrelated to the level of real Gross Domestic Product (GDP).
If the government imposes an effective ________, output decreases and ________ increases
A) price support; consumer surplus B) price floor; consumer surplus C) price support; total revenue D) price floor; marginal benefit to consumers E) price ceiling; efficiency