How does the effect of changes in foreign demand compare to the effect of changes in the foreign exchange rate?
a. Changes in foreign demand cause a shift in the aggregate demand curve, whereas changes in the foreign exchange rate cause movement along the curve.
b. Changes in foreign demand shift the aggregate demand curve rightward, whereas changes in the foreign exchange rate shift the curve leftward.
c. Changes in foreign demand cause movement along the aggregate demand curve, whereas changes in the foreign exchange rate cause curve shifts.
d. Changes in foreign demand and changes in the foreign exchange rate can both shift the aggregate demand curve.
d. Changes in foreign demand and changes in the foreign exchange rate can both shift the aggregate demand curve.
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Which was a common sociopolitical/economic feature of Colonial America?
a. Difficulty in the expansion of agriculture b. Commercial production of finished metal parts for locomotion c. Significant improvement of infrastructure, especially roads d. None of the above is correct.
If higher tariffs, such as those enacted by the Smoot-Hawley trade bill, reduce the imports of the United States, which of the following will be most likely to occur?
a. U.S. employment will increase. b. The unemployment rate of the United States will decline. c. U.S. exports will increase because foreigners will want to buy more from U.S. producers. d. U.S. exports will decline because foreigners will be earning fewer of the dollars needed to purchase goods and services from Americans.