If exchange rates are determined in a floating rate system, what determines the value of a U.S. dollar in terms of euros?
a. government exchange rate policies
b. IMF rules and policies
c. demand and supply
d. central bank interventions
c
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If income increases from $110,000 to $120,000 and consumption from $108,000 to $114,000 . the marginal propensity to consume is:
a. 0.40. b. 0.60. c. 0.94. d. 1.60.
Which of the following is an expected result of a network externality?
a. An increase in deadweight loss b. An increase in social costs c. A positive spillover effect d. An increase in private costs
Market economies are distinguished from other types of economies largely on the basis of
a. the political affiliations of government officials. b. the process by which government officials are elected or appointed. c. the ways in which scarce resources are allocated. d. the number of retail outlets available to consumers.
A profit-maximizing firm in a competitive market will always make marginal adjustments to production as long as
a. average revenue is greater than average total cost. b. average revenue is equal to marginal cost. c. marginal cost is greater than average total cost. d. price is above or below marginal cost.