Instructor Explanation: Chapter 2 10. 1) Set: Dollar "votes" tell producers what consumer's want. This will drive the value of the dollar down to near zero. A weak dollar means that the U.S. dollar's value is declining compared to other currencies, most notably the euro. The invisible hand also, does not intrinsically require that people accumulate, rather than consume capital. ... a convenient means of exchanging goods & services with out engaging in barter. The idea of dollar voting has faced criticism for its class implications. Criticisms. Term. Have students write the article. Student Answer: What will be produced? Term. The U.S. dollar has seen its fair share of troubles in the past decade. 2) Review handout from previous class on the different types of economies (handout attached). Barter: Definition. How can the system accommodate change? It would make hyperinflation look like a day in the park. People who like the market system tend to stress its responsiveness to consumer desires. The Federal Reserve Open Market Committee (FOMC) has made it official: After its latest two day meeting, it announced its goal to devalue the dollar by 33% over the next 20 years. These purchases do not affect low-income producers and consumer in the food market. In modern America, dollar voting is often seen being used by middle and upper middle class consumers who spend their money at local farmers markets, community agricultural programs, and the preparation of "slow food". A weak currency creates both positive and negative consequences. This is a headline of a brief newspaper article on the role of the consumer in a market economy. But that doesn't mean it's not still valuable. Question : (TCO 1) Consumer sovereignty and "dollar votes" guide the market system in dealing with which fundamental question? Only when people consume less than they produce, and put the remainder into savings and investment, do we have capital accumulation. Dollar voting implies that consumers, not producers, ultimately decide what will be produced in a market economy. When the crash occurs, these parties will demand assets denominated in anything other than dollars. Who is to receive the output? Stockholder voting right allow shareholders of record in a company to vote on certain corporate actions, elect members to the board of directors, and … The collapse of the dollar means that everyone is trying to sell their dollar-denominated assets, and no one wants to buy them. How is the output to be produced? And the same with dollar votes. 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