Speculation in exchange markets is often thought of as conducive to wild fluctuations in exchange rates. In practice it appears that speculators
a. have destabilized several currencies that were at sustainable equilibrium levels.
b. have no effect in fixed rate systems.
c. in fact tend to stabilize exchange rates rather than destabilize them.
d. All of the above are correct.
c
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To function as money, something must hold its purchasing power over time. That is, it must be a
A) store of value. B) standard of deferred payment. C) unit of accounting. D) medium of exchange.
The government (G) category of gross domestic product (GDP) excludes welfare and other transfer payments
a. True b. False Indicate whether the statement is true or false
The GDP figures fail to count labor services and other household production. Once this omission is taken into account,
a. the income differences between the high and low income countries are small. b. the differences in living standards between the high and low income countries are small. c. the income differences between the high and low income countries are still huge. d. the life expectancy in the high and low income countries is approximately the same.
A decrease in the price of pizza will lead to a(n):
A. increase in the demand for pizza. B. decrease in the number of consumers. C. decrease in the quantity of pizza demanded. D. increase in the quantity of pizza demanded.