In the Market for Euros, a Decrease in U

question 69

Multiple Choice

In the market for euros, a decrease in U.S. imports from Europe tends to

• A)decrease equilibrium price.
• B)increase excess demand.
• C)increase equilibrium price.
• D)cause no change in equilibrium price.

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Definitions:

Government Intervention

Actions taken by a government to affect the economy, which can include regulations, subsidies, tariffs, and other forms of involvement.

Traffic Lights

Signaling devices positioned at road intersections, pedestrian crossings, and other locations to control flows of traffic.

Nonpayers

Individuals or entities that do not contribute payments towards a service or good from which they benefit.

Public Good

A good that is non-excludable and non-rivalrous, meaning that its consumption by one individual does not reduce availability to others.