This topic contains a solution. Click here to go to the answer

Author Question: In international exchange markets, a rise in interest rates in the United States will cause the ... (Read 219 times)

yoroshambo

  • Hero Member
  • *****
  • Posts: 566
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?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ngr69

  • Sr. Member
  • ****
  • Posts: 318
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.




ngr69

  • Sr. Member
  • ****
  • Posts: 318

 

Did you know?

Human kidneys will clean about 1 million gallons of blood in an average lifetime.

Did you know?

Most strokes are caused when blood clots move to a blood vessel in the brain and block blood flow to that area. Thrombolytic therapy can be used to dissolve the clot quickly. If given within 3 hours of the first stroke symptoms, this therapy can help limit stroke damage and disability.

Did you know?

The types of cancer that alpha interferons are used to treat include hairy cell leukemia, melanoma, follicular non-Hodgkin's lymphoma, and AIDS-related Kaposi's sarcoma.

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Did you know?

There are major differences in the metabolism of morphine and the illegal drug heroin. Morphine mostly produces its CNS effects through m-receptors, and at k- and d-receptors. Heroin has a slight affinity for opiate receptors. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide).

For a complete list of videos, visit our video library