In August, the Canadian wheat harvest is in and exports to wheat-consuming nations begin in earnest. We would expect to see the Canadian rate of exchange
a. increase because there is an increase in the demand for Canadian wheat, which means an increase in the demand for Canadian dollars
b. decrease because there is an increase in the demand for Canadian wheat, which means an increase in the demand for Canadian dollars
c. increase because there is an increase in the demand for Canadian wheat, which means an increase in the supply of Canadian dollars
d. increase because there is a decrease in the demand for Canadian wheat, which means an increase in the supply of Canadian dollars
e. remains fixed because the exports create a counterbalance of imports
A
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Advances in productivity increase supply because they might
A) increase the price expected in the future. B) decrease the cost of production. C) increase the number of firms producing the good. D) raise the prices of resources used to produce the good. E) decrease the number of goods available.
Refer to Figure 3-4. At a price of $10, how many units will be sold?
A) 200 B) 400 C) 600 D) 800