Ceteris Paribus,with a Fixed Exchange Rate,if Americans Decide to Buy

question 1

Multiple Choice

Ceteris paribus,with a fixed exchange rate,if Americans decide to buy more Japanese-made television sets,this causes a market ________ of Japanese currency and creates a balance-of-payments ________ for the United States.

• A)surplus;deficit
• B)shortage;deficit
• C)surplus;surplus
• D)shortage;surplus

---

Definitions:

Qualifying Relative

A dependent who does not meet the criteria to be a qualifying child but qualifies based on relationship, income, and support tests for tax purposes.

Earn

To receive money or another form of compensation in exchange for labor or services provided.

Tax Return Form

The document or electronic form used to report income, deduct expenses, and calculate taxes owed or refunded by the taxpayer.

Taxpayer

An individual or entity that is obligated to pay taxes to a federal, state, or local government body.