Which of the Following Would Tend to Shift the Supply

question 277

Multiple Choice

Which of the following would tend to shift the supply of dollars in the market for foreign-currency exchange in the open-economy macroeconomic model to the right?

• A)The exchange rate rises.
• B)The exchange rate falls.
• C)The expected rate of return on U.S. assets rises.
• D)The expected rate of return on U.S. assets falls.

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Definitions:

Price Charge

The amount of money demanded by a seller for a product or service, essentially the cost to the buyer.

Marginal Revenue Curve

A graphical representation that shows how the addition of one more unit of a good or service sold affects the total revenue of a business.

Demand Curve

A graphical representation that shows the relationship between the price of a good and the quantity of that good consumers are willing to buy.

Long-Run Equilibrium

A state in economics where all factors of production and economic variables are in balance, and no external pressures are causing change.