Which of the Following Examples Would Lead to a Demand

question 33

Multiple Choice

Which of the following examples would lead to a demand for German marks?

• A)​Judy Potter, an American, wants to purchase a German automobile.
• B)​Jim Potter, Judy's husband, wants to purchase German stocks.
• C)​IBM, Judy's employer, wants to buy a small computer firm in Germany.
• D)​All of the above.

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Definitions:

Domestic Price

The price of goods or services within a country’s borders, influenced by local demand, supply, taxes, and other factors.

Oil Barrels

A standard unit of measure for crude oil and petroleum products, equivalent to 42 US gallons.

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors, enabling trade benefits.

Free Trade

International commerce that operates naturally without the interference of tariffs, quotas, or restrictions.