In the foreign exchange market, an increase in the supply of dollars could be the result of
A) an increase in the expected future exchange rate.
B) a decrease in the U.S. interest rate differential.
C) a decrease in the exchange rate.
D) an increase in the exchange rate.
E) an increase in the U.S. interest rate differential.
B
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How are the following events likely to affect an economy's production possibilities curve?
a. An increase in the working population of the economy b. The import of better production technology c. A natural disaster that destroys some of the economy's resources d. Emigration of workers to other countries
Suppose that the number of jobs for engineers expands by 10 percent per year, the number of new engineers by 5 percent per year while the number of automobile mechanics grows by 8 percent and the number of new automobile mechanics jobs grows by 3
percent. We conclude that A) frictional unemployment will increase. B) frictional unemployment will decrease. C) structural unemployment will increase. D) structural unemployment will increase 4 times.