Last Week,six Swedish Kronor Could Purchase One U

question 258

Multiple Choice

Last week,six Swedish kronor could purchase one U.S.dollar.This week,it takes eight Swedish kronor to purchase one U.S.dollar.This change in the value of the dollar will ________ exports from the United States to Sweden and ________ U.S.aggregate demand.

• A)increase; increase
• B)decrease; decrease
• C)increase; decrease
• D)decrease; increase

---

Definitions:

Surplus II

An excess of supply over demand, leading to lower prices and potential inefficiencies in the market.

Equilibrium Quantity

At the market equilibrium price, the amount of goods or services available matches the amount that consumers want to buy.

Willingness to Pay

The maximum amount an individual is prepared to spend on a good or service, reflecting the value they derive from it.

Pumpkin Market

A conceptual term that might refer to a market for pumpkins, illustrating principles of supply, demand, and seasonal fluctuations.