Assume that the British pound and Swiss franc are highly correlated. A U. S. firm anticipates the equivalent of $1 million cash outflows in francs and the equivalent of $1 million cash outflows in pounds. During a cycle, the firm is affected by its exposure: strong dollar; favorably weak dollar; not strong dollar; not weak dollar; favorably

strong dollar; favorably

Explanation:

During a strong dollar cycle, a US Firm is favorably accepted by its exposure because when the dollar is strong it means that it has a stronger buying or purchasing power for goods and services in other countries.

Also for a US Firm, a strong dollar cycle allows for importation of goods and services to be very cheap.

answer; blank(1); /rises; blank(2); //increases;

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.