When interest rates in the U.S. increase, the supply of dollars ________ and the demand for dollars ________.
decreases; increases
increases; decreases
increases; increases
decreases; decreases
(17)
The World Trade Organization
was established as part of the Bretton Woods agreement.
requires members to charge the same prices on goods traded internationally.
requires members to reduce tariffs and eliminate non-tariff barriers.
is made up of business leaders from all over the world.
(18)
If the country imposes a tariff on the product depicted in the graph, then imports
increase from QDD′ to QDD.
increase from QDD′ − QDDtoQSD′ − QSD.
decrease from QDD − QSD to QDD′ − QSD′.
decrease from QDD′ to QDD.
(19)
If political instability increases abroad,
the supply of dollars increases and the dollar appreciates.
the supply of dollars decreases and the dollar depreciates.
the demand for dollars decreases and the dollar depreciates.
the demand for dollars increases and the dollar appreciates.
(20)
What is the effect of a tariff on the exchange rate?
It causes the domestic currency to appreciate.
It causes the domestic currency to depreciate.
It affects only the quantity of goods imported, not the exchange rate.
It affects only the quantity of goods imported and exported, not the exchange rate.
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