Cost of a foreign currency
When cost of a foreign currency increases its supply too increases. Elucidate why?
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When exchange rate rises, this will make domestic country’s goods cheaper to foreigners. The demand for our exports will increase. It entails more supply of the foreign exchange.
Tom reimburses $5.00 for a ticket to see a present hit movie. If Tom was willing to reimburse up to $7.00 for that ticket, his consumer surplus equals: (1) $5.00 (2) $2.00 (3) $7.00 (4) Tom does not receive any consumer surplus as he purchased the ticket.
The market demand curve for latest houses would rise in response to a rise in: (1) construction technology. (2) The costs of lumber. (3) Housing prices. (4) Legal price ceilings on rental properties. (5) Expectations regarding future housing prices. Q : GDP gap "The economic cost of "The economic cost of unemployment is measured by the GDP gap." Explain this statement. ?
"The economic cost of unemployment is measured by the GDP gap." Explain this statement. ?
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Describe Okun's law? Give an illustration of how it works.
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