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Author Question: In international exchange markets, a rise in interest rates in the United States will cause the ... (Read 220 times)

yoroshambo

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on: Jun 29, 2018
In international exchange markets, a rise in interest rates in the United States will cause the demand for dollars to ________ and the supply of dollars to ________.
 
  A) increase; increase B) decrease; increase C) decrease; decrease D) increase; decrease

Question 2

Using Figure 9.1, explain what a firm would do in the short run if the market price of its product dropped below P1 .
 
  What will be an ideal response?


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ngr69

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Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

The firm would shut down since it would be suffering an operating loss. For the firm to remain in business in the short run the price must be equal to or greater than the average variable cost.


yoroshambo

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Reply #2 on: Jun 29, 2018
Correct answers!


ngr69

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Reply #3 on: Jun 29, 2018
Great! Please up vote :D


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