Under the Bretton Woods system of fixed exchange rates,
A. devaluations were frequent and small.
B. devaluations were usually unforeseen.
C. the IMF ensured that exchange rates were never changed.
D. speculators could profit from an attack on a weak currency.
Answer: D
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If interest rates in the European Union decrease
A) the demand for U.S. dollars will fall in the foreign exchange market. B) the supply of U.S. dollars will fall in the foreign exchange market. C) the demand for euros will fall in the foreign exchange market. D) nothing will change in the foreign exchange market.
Which of the following could explain a leftward shift of the labor demand curve?
a. Firms are unable to sell all the output they produce. b. Workers have become less productive. c. Workers have become more productive. d. Both (a) and (b) are correct. e. The demand curve for the product that firms sell shifts to the right.
The purchasing power parity method of comparing income levels across countries
What will be an ideal response?
People demand more of product X when the price of product Y decreases. This means X and Y are:
a. Substitutes b. Complements c. Both inexpensive d. Not related