If the United States experiences an economic boom, how will this affect the foreign exchange value of the U.S. dollar?
a. It will fall because other nations would be forced to raise their interest rates.
b. It will fall because the United States will import more goods and services, leading to an increased demand for foreign currencies.
c. It will rise because U.S. GDP would be rising faster than other countries.
d. It will rise because the Fed will have to lower U.S. interest rates.
e. It will rise because the United States will import more goods and services, leading to an increased demand for foreign currencies.
B
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Assume that the graphs show a competitive market referenced in the question below.
Select the graph that best shows the change in the market following a tax placed on the buyers in the market.
A. graph (1) B. graph (2) C. graph (3) D. graph (4)