Assume there is an increased demand in the United States for Australian wines. If all other factors are held constant, this will result in
A) an increase in the U.S. dollar exchange rate for Australian dollars.
B) an appreciation of the U.S. dollar.
C) a movement along the demand curve for Australian wine.
D) a decrease in the par value of the Australian dollar.
Answer: A
You might also like to view...
Refer to Figure 9.8. With no government interference, the country pictured will
A) import 500 tons of sugar. B) import 300 tons of sugar. C) import 200 tons of sugar. D) import no sugar. E) export sugar.
Employers in a city must pay a specific tax of $t per hour worked by their employees while employers in the suburbs of the city do not have an employment tax. What does a general equilibrium approach predict regarding the wages and employment of both the city and suburban workers if the city decides to substantially reduce their employment tax rate?
A) Wages will increase in the city, but not in the suburbs, and employment will increase in both. B) Wages will increase in both the city and the suburbs, but employment will fall in both. C) Wages will increase in both the city and suburbs, employment will increase in the city, but decrease in the suburbs. D) Wages will increase in both the city and the suburbs, employment will decrease in the city, but increase in the suburbs.