Your U.S.-based company is selling parts to a company in Chile and the company will pay you 9.8 million pesos in 3 months. The current exchange rate is 490 pesos/US$. If the exchange rate at the time of payment is 510 pesos/US$
A) you earn additional profit.
B) the Chilean company will end up paying more for the goods.
C) the Chilean company will end up paying less for the goods.
D) you earn less profit.
D
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California is the sole producer of almonds in the United States. Suppose the price for a pound of almonds has increased during the past year. It is also predicted that almond prices will remain high. Over time, we predict that the
A) elasticity of supply will increase. B) elasticity of supply will decrease. C) elasticity of supply will remain constant. D) elasticity of supply will increase and then decrease.
Under the gold standard, all except one of the following are true. Which is not true?
a. Paper currency was convertible into gold at a fixed rate. b. A balance-of-payments deficit would result in a loss of gold. c. A balance-of-payments surplus would result in an inflow in gold. d. The money supply of any country was largely determined by flows of gold. e. A surplus country experienced a rise in its money supply and a drop in its price level.