Professional Documents
Culture Documents
1) Suppose that in the clothing market, production costs have fallen, but the
equilibrium price and quantity purchased have both increased. Based on this
information you can conclude that
A. the supply of clothing has grown faster than the demand for clothing
B. demand for clothing has grown faster than the supply of clothing
C. the supply of and demand for clothing have grown by the same proportion
D. there is no way to determine what has happened to supply and demand with this
information
Final Exam Answers just a click away ECO 561 Final Exam
2) Camille's Creations and Julia's Jewels both sell beads in a competitive
market. If at the market price of $5, both are running out of beads to sell (they
can't keep up with the quantity demanded at that price), then we would expect
both Camille's and Julia's to:
A. raise their price and reduce their quantity supplied
B. raise their price and increase their quantity supplied
C. lower their price and reduce their quantity supplied
D. lower their price and increase their quantity supplied
C. a decrease in the demand for U.S. dollars and a depreciation in the exchange rate
D. a decrease in the supply of U.S. dollars and an appreciation in the exchange rate
To download the complete Questions and Answers click ECO 561 Entire
Course
27) The quantity theory of money states that
A. the money supply divided by the velocity of money equals the price level divided
by real output
B. the money supply times the velocity of money equals the price level times real
output
C. the money supply times the price level equals real output divided by the velocity
of money
D. the money supply times the price level equals real output times the velocity of
money
28) Suppose that U.S. prices rise 4% over the next year while prices in
Mexicorise 6%. According to the purchasing power parity theory of exchange
rates,what should happen to the exchange rate between the dollar and the
peso?
A. The dollar should depreciate.
B. The peso should appreciate.
C. The peso should depreciate.
D. The dollar will be revalued.
Want to download the Questions..??Click ECO 561 Final Exam Study Materials
29) A rise in the domestic interest rate leads to capital
A. outflows and exchange rate appreciation