Changes in exchange rates are usually expressed in percentage terms.The percentage rate of appreciation for one currency will be close to the rate of depreciation for the other nation whenever:
a. the change in the rate is very small.
b. the exchange rates are very different in quantitative terms.
c. the change in the rate is very large.
d. one exchange rate is 50% more than the other one at the time of the change
Ans: a. the change in the rate is very small.
You might also like to view...
The production possibilities frontier is used by economists to depict
A) the strictly financial costs of production. B) the opportunity costs of production. C) the strictly financial benefits of production. D) the opportunity benefits of production.
Total reserves are
A) required reserves plus vault cash. B) required reserves plus excess reserves. C) required reserves. D) excess reserves.
Water is essential to life while diamonds, while beautiful, are not essential to life. In the marketplace, diamonds are very expensive while water is relatively cheap. We can resolve this paradox by focusing on
a. total utility rather than average utility b. average utility rather than marginal utility c. marginal utility rather than total utility d. total utility rather than marginal utility e. average utility rather than total utility
In drawing a straight-line production possibilities curve for an economy that produces oil and corn, we assume that resources (for example, the number of labor hours)
a. are fixed b. increase at a constant rate c. increase at an increasing rate d. increase at a decreasing rate e. are not uniform, such as a variety of skills and quality of work