Can the U.S. dollar and the European euro both appreciate relative to each other?
a. Yes, both countries can gain in this manner.
b. Yes, provided the central banks permit it.
c. No, unless there is a system of fixed exchange rates.
d. No, if one currency appreciates, the other must depreciate.
d
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Define allocative efficiency. Explain the significance of this concept in economics?
What will be an ideal response?
Which of the following statements is (are) correct? The equilibrium interest rate is the rate that
a. equates the supply of loanable funds with the demand for loanable funds b. equates new saving with investment plus the bond-financed government surplus c. equates private savings with investment d. All of the above e. None of the above
What effect does the increase of the price of gasoline have on the cost curves of package delivery firms such as Federal Express or United Parcel Service? How might the effects differ for a software firm such as Symantec that uses the Internet?
Please provide the best answer for the statement.
Refer to the diagram. Land:
A. will cease to be used in production if demand falls below D 4 .
B. would be a free resource if demand is D 4 or less.
C. would be an economic (scarce) resource in the case of all four demand curves.
D. would be a free resource in the case of all four demand curves.