Which of the following people is most likely to demand U.S. dollars in the foreign exchange market?
a. A United States resident who is traveling to the Greek Islands
b. An American investor who intends to buy Japanese government bonds
c. A resident of Australia who is traveling to Belgium
d. A British importer of U.S. beef
e. A U.S. company that is importing avocados from Mexico
Question 2
An increase in the price of inputs used to produce good A will:
a. increase supply, increase price and increase the quantity exchanged.
b. increase demand, increase price and increase the quantity exchanged.
c. decrease supply, increase price and decrease the quantity exchanged.
d. decrease supply, decrease price and decrease the quantity exchanged.
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