A reduction in current consumption to pay for the investment in capital intended to increase future production is known as the:

Which of the following increases the possibility of depreciation of the domestic currency in the foreign exchange market?

a. An increase in the demand for domestic goods in the foreign market b. A decrease in total imports made by the domestic country c. A decrease in the interest rates in the domestic country d. An increase in the short-term foreign investments e. An increase in domestic production of import substitutes

A decrease in price:

A. does not change quantity demanded if demand is elastic. B. does not cause a quantity effect when demand is perfectly inelastic. C. causes a decrease in total revenue due to the quantity effect. D. causes an increase in total revenue due to the price effect.