The balance of payments is the domestic price of a foreign currency.
Answer the following statement true (T) or false (F)
False
The exchange rate is the domestic price of a foreign currency.
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If we observe a market where the quantity supplied exceeds the quantity demanded, but the market price does not fall, then one explanation for this observation is
A. the market has a price ceiling in place. B. consumers don’t really like this product. C. the market has a price floor in place. D. sellers must produce a minimum quantity of the good, regardless of the demand for the product.
When the value of the dollar changes from £0.5 to £0.75, then the British pound has ________ and the U.S. dollar has ________
A) appreciated; appreciated B) depreciated; appreciated C) appreciated; depreciated D) depreciated; depreciated
If the demand curve is horizontal, then demand is:
A. elastic. B. unit elastic. C. perfectly inelastic. D. perfectly elastic.
A deficit in a country's current account balance occurs whenever
A. money outflows from the country exceed its money inflows. B. money inflows into a country exceed its money outflows. C. its currency falls in value relative to other currencies. D. the country is alone in maintaining a strict gold standard.