Assume that Switzerland and Britain have floating exchange rates. All else held constant, if a tight money policy raises interest rates in Britain as compared to Switzerland, then ________.
A. the Swiss franc will depreciate
B. the pound will depreciate
C. the Swiss franc will appreciate
D. gold bullion will flow into Switzerland
Answer: A
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McDonald's and its major competitors compete based:
A) only on the price. B) only on the basis of product characteristics. C) on both the price and product characteristics. D) none of the above because the fast-food industry is perfectly competitive.
Which of the following is not considered a rationale for the intervention of government in the market process in the United States?
A) the redistribution of income B) the reallocation of resources C) the long-run planning of scarce resources D) the short-run stabilization of prices E) All of the above
Some companies and celebrities are using a variant of pollution rights to become "carbon neutral."
a. True b. False
Which of the following categories of goods and services is included in the CPI?
a. food b. transportation c. housing d. All of these.