The basic type of intervention by central banks under the managed floating exchange rate system is to:
A. Readjust the peg for exchange rates
B. Buy and sell currencies to influence supply and demand for foreign exchange
C. Renegotiate the rate at which foreign currencies can be converted into gold
D. Make pronouncements but then do nothing and let the market set the exchange rate
B. Buy and sell currencies to influence supply and demand for foreign exchange
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Which of the following would shift the supply curve for a product to the right?
a. an increase in the price of a resource used in the good's production b. the expectation of a higher price in the near future c. an increase in the price of the product d. an increase in the price of an alternative good e. an improvement in the technology for producing the good
If net exports decrease, the expenditure schedule will
a. get steeper. b. get flatter. c. shift upward. d. shift downward.
Explain why an investor cannot simply compare the size of promised payments from different investments, even if the interest rates and other risk factors are the same.
What will be an ideal response?
If a huge percentage change in price leads to a small percentage change in quantity demanded, then demand is said to be inelastic
a. True b. False Indicate whether the statement is true or false