Biology Forums - Study Force

A shift of the U.S. demand curve for Mexican pesos to the left and a decrease in the pesos price per dollar would likely result from:
 a. an increase in the U.S. inflation rate relative to the rate in Mexico.
  b. a change in U.S. consumers' tastes away from Mexican products and toward products made in South Korea, India, and Taiwan.
  c. U.S. buyers perceiving that domestically-produced products are of a lower quality than products made in Mexico.
  d. all of these.

QUESTION 2

The consumption function has a positive slope.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 3

When we speak of the national debt, we refer to the federal government debt only.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 4

Which of the following would cause the U.S. demand curve for Japanese yen to shift to the right?
 a. An increase in the U.S. inflation rate compared to the rate in Japan.
  b. A higher real rate of interest on investments in Japan than on investments in the United States.
  c. The popularity of Japanese products increases in the United States.
  d. All of these.

QUESTION 5

John Maynard Keynes explained that the consumption function is a major component of the aggregate expenditures model.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 6

The debt ceiling places a legal limit on the size of the national debt.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 7

Suppose the exchange rate changes so that more Japanese yen are required to buy a dollar. We could conclude that:
 a. the Japanese yen has appreciated in value.
  b. U.S. citizens will buy more Japanese imports.
  c. Japanese will demand more U.S. exports.
  d. U.S. citizens will buy less Japanese imports.

QUESTION 8

If autonomous consumption is greater than zero and the marginal propensity to consume is greater than zero, but less than one, the consumption function will first be above and then below the 45 degree line.
 a. True
  b. False
  Indicate whether the statement is true or false

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Makes more sense now, TY