Which of the following best describes exchanges rates that are determined by the demand and supply foreign exchange in the absence of official intervention?
A) floating exchange rates
B) the gold standard
C) target zones
D) the Bretton Woods system
A
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The more interest-sensitive is money demand, the
A) more effective is fiscal policy relative to monetary policy. B) more effective is monetary policy relative to fiscal policy. C) steeper is the IS curve. D) steeper is the LM curve.
Suppose Always There Wireless serves 100 high-demand wireless consumers, who each have a monthly demand curve for wireless minutes of QdH = 200 - 100P, and 300 low-demand consumers, who each have a monthly demand curve for wireless minutes of QdL = 100 - 100P, where P is the per-minute price in dollars. The marginal cost is $0.25 per minute. If Always There Wireless charges the highest fixed fee that it can without losing the low-demand consumers, which of the following is the most profitable price per minute?
A. $0.35 B. $0.40 C. $0.50 D. $0.60
In reference to determining the optimal amount of advertising, managers of trade associations face each of following additional challenges except which one?
A) lack of free riders B) the ability for a firm to benefit from advertising that they did not pay for C) difference in the marginal benefits of advertising across firms D) difficulty in prescribing a fair and practical way to share the cost of advertising across firms
Rent controls are
A) when rents are set above the market clearing level to aid landlords. B) used to provide incentives to contractors to build new apartments. C) used to generate revenue for the local government. D) when rents are set below the market clearing level.