Differences in income are most directly related to which of the following economic question?
A) What goods and services are produced?
B) In what quantities are various goods and services produced?
C) How are goods and services produced?
D) Who consumes the goods and services that are produced?
Question 2
If the U.S. interest rate differential increases, then in the foreign exchange market the
A) quantity of U.S. dollars supplied increases.
B) supply of U.S. dollars decreases.
C) demand for U.S. dollars does not change.
D) supply of U.S. dollars increases.
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