How does a decrease in the federal budget deficit affect the demand for dollars and the supply of dollars on the foreign exchange market?
A) The demand for dollars falls, and the supply of dollars falls.
B) The demand for dollars rises, and the supply of dollars falls.
C) The demand for dollars rises, and the supply of dollars rises.
D) The demand for dollars falls, and the supply of dollars rises.
Question 2
Refer to Table 4-6. The equations above describe the demand and supply for Aunt Maud's Premium Hand Lotion. The equilibrium price and quantity for Aunt Maud's lotion are 20 and 30 thousand units.
What is the value of economic surplus in this market?
A) 600 thousand B) 1,050 thousand C) 1,500 thousand D) 2,100 thousand
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