If a Canadian Company Builds and Operates a Mine in Indonesia,in

question 12

Multiple Choice

If a Canadian company builds and operates a mine in Indonesia,in the foreign-exchange market there will be a(n)

• A)fall in the demand for dollars in the foreign-exchange market.
• B)increase in the demand for dollars in the foreign-exchange market.
• C)fall in the supply of dollars to the foreign-exchange market.
• D)increase in the supply of dollars to the foreign-exchange market.
• E)decrease in the debits on Canada's capital account.

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Definitions:

Long-Run Aggregate Supply Curve

A graphical representation showing an economy’s potential output level when all factors of production are fully utilized.

Labor Force

The total number of people available to work, including both the employed and those seeking employment but currently unemployed.

Net Investment

The total amount spent on new capital assets minus the depreciation on existing capital assets.

Autonomous Consumption

The part of consumption that does not change with income levels, representing basic necessities one must purchase regardless of income.