Exchange Rates
The price of a nation's currency
Exchange Rate
This type of monetary policy would cause an increase in the money supply, leading to a decline in interest rates
Expansionary
A tax on goods coming into the country
Imports
A sustained increase in price level
Inflation
Scarcity
This is the title given to countries that intentionally change their exchange rate
A decline in interest rates will eventually mean this for the value of a currency
Depreciation
A limit on the quantity of goods entering a country
Quota
An increase in price for an item can be caused by
An increase in demand, or a decrease in supply
A country has this if they are able to produce the good at a lower opportunity cost than their trade partners
Comparative Advantage
Most exchange rates around the world are determined by this
Supply and Demand (for the nation's currency)
A lower money supply will cause this in the trade balance for a country.
Deficit (Imports rise, Exports fall)
The condition of allowing trade to run its course without interference
Congress/President (Government)
An individual who is laid off from their job due to a lack of skills
Structurally unemployed
A decrease in the value of a nation's currency is known as
The Federal Reserve could encourage a trade surplus by conducting this policy
Expansionary Monetary Policy
A complete shut down of trade with another country
Embargo
Making a decision one unit at a time
Marginal Analysis
The business structure in which a few firms control the industry
Oligopoly
Most appreciation of currency is caused by
An increase in the demand for that currency
The Federal Reserve buying bonds will have this impact on the trade balance.
Trade Surplus (Exports rise, Imports fall)
The U.S. has a quota on this product, which largely affects imports from Argentina
Beef
The U.S. Income tax is an example of this type of tax
Progressive
A good that has a large change in quantity demanded following a change in price is said to be this
Elastic