The demand for yen in exchange for dollars will decrease if, ceteris paribus

a.Income in Australia rises.

b.The desirability of investing in japan increases.

c.Speculators think the value of the yen relative to the dollar will rise.

d.Japanese interest rates decrease relative to interest rates in other countries.

A decrease in the cash rate

a.decreases the demand for loanable funds, lowers the real interest rate, and decreases aggregate demand.

b.lowers the exchange rate, increases the supply of loanable funds, and increases aggregate demand.

c.lowers other short-term interest rates, raises the real interest rate, and increases aggregate demand.

d.increases other short-term interest rates, decreases investment, and decreases aggregate demand.

Automatic fiscal policy occurs

a.because government expenditures on goods and services fluctuate with real GDP.

b.because tax revenues and transfer payments fluctuate with real GDP.

c.because monetary policy is effective.

d.when the Parliament makes changes to transfer payment programmes.

When people who are holding the money of some other country want to exchange it for Australian dollars, they ________ Australian dollars and ________ that other country's money.

a.supply; supply

b.supply; demand

c.demand; demand

d.demand; supply

Suppose the equilibrium price in a perfectly competitive industry is $25 and a firm in that industry charges $30. Which of the following will happen?

a.The firm's profits will increase.

b.The firm will lose some customers but still can maximise profits.

c.The firm's total revenue may increase or decrease depending on the price elasticity of demand.

d.The firm will not sell any output.