Choose the Letter of the Diagram in Figure 36

question 33

Multiple Choice

Choose the letter of the diagram in Figure 36.2 that represents the shift in the foreign exchange market for dollars given the following situation, ceteris paribus: The president of the United States decides to support the dollar by purchasing dollars with U.S.holdings of foreign currencies.

• A)a.
• B)b.
• C)c.
• D)d.

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Definitions:

Consumer Surplus

The variation between the sum consumers are willing to allocate for a good or service and the sum they actually allocate.

Surplus II

An additional amount of a resource, product, or service that exceeds the amount demanded or utilized.

Consumer Surplus

The discrepancy between what consumers are willing to spend on a good or service and their actual expenditures.

Surplus II

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