A permanent shift in the foreign exchange market supply and demand curves such that the fixed exchange rate is no longer an equilibrium rate is referred to as:
a. permanent devaluation.
b. speculative disequilibrium.
c. permanent revaluation.
d. speculative equilibrium.
e. fundamental disequilibrium.
e
You might also like to view...
Economies of scope exist when
A) the total cost of production falls as the output increases. B) a firm hires specialized resources to produce a range of goods and services. C) a firm uses outsourcing to produce a good or service. D) the cost of producing a unit of a good falls as its output increases.
The slope of the aggregate expenditure curve equals the change in
a) planned expenditure divided by the change in real GDP b) autonomous expenditure divided by the change in real GDP c) government expenditure divided by the change in real GDP d) real GDP divided by the change in planned expenditure
If a positive relationship exists between x and y:
A. an increase in x will cause y to decrease. B. a decrease in x will cause y to increase. C. the relationship will graph as an upsloping line. D. the vertical intercept must be positive.
What combination of changes would most likely decrease the equilibrium price?
A. When supply decreases and demand increases B. When demand increases and supply increases C. When demand decreases and supply decreases D. When supply increases and demand decreases