Multiple Choice
If, in a demand curve/supply curve graph with the quantity of U.S. imports plotted on the horizontal axis and the price of U.S. imports in dollars plotted on the vertical axis, suppose that, from an initial equilibrium position, there is now a depreciation of the U.S. dollar relative to other currencies. (Assume that the supply curve is horizontal.) Other things equal, this depreciation of the dollar would cause the __________.
A) demand curve to shift to the left (or vertically downward)
B) demand curve to shift to the right (or vertically upward)
C) supply curve to shift vertically downward
D) supply curve to shift vertically upward
Correct Answer:

Verified
Correct Answer:
Verified
Q7: Is the Marshall-Lerner condition of any relevance
Q8: Assume a two-country world containing country A
Q9: The simple Marshall-Lerner condition would suggest that
Q10: Under either a gold standard or a
Q11: If depreciation of a home currency occurs,
Q13: Briefly compare and contrast the price adjustment
Q14: Suppose that a 5% depreciation of the
Q15: If a home country depreciates or devalues
Q16: If country A depreciates its currency against
Q17: Suppose that there is an increase in