Which of the Following Is Consistent with Moving from a Shortage

question 125

Multiple Choice

Which of the following is consistent with moving from a shortage to equilibrium in the market for foreign currency exchange?

• A)the exchange rate falls so foreign residents want to buy more U.S.goods and services
• B)the exchange rate falls so foreign residents want to buy fewer U.S.goods and services
• C)the exchange rate rises so foreign residents want to buy more U.S.goods and services
• D)the exchange rate rises so foreign residents want to buy fewer U.S.goods and services

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Definitions:

Farming

The practice of cultivating the land or raising stock, such as the growing of crops or the raising of livestock to produce food, fiber, and other materials.

Brocolli

A green vegetable with a large flowering head, often consumed for its nutritional value.

Marginal Product

The marginal product is the additional output resulting from a one-unit increase in the use of a variable input, holding all other inputs constant, in the production process.

Units of Output

The measure of total production or services produced by a company or sector.