The graph illustrates the market for British pounds, the currency of the United Kingdom. As the number of buyers of pounds increases and the number of sellers of pounds increases, the equilibrium price of a pound
A) will fall
B) will rise.
C) will remain the same.
D) might rise, fall, or remain the same depending on whether the effect on buyers is larger than, less than, or the same as the effect on sellers.
E) None of the above answers is correct.
D
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The currency exchange rate is the rate at which one nation's currency can be exchanged for another
Indicate whether the statement is true or false
If income were equally distributed, a nation's Lorenz curve would be identical to the _______________.
Fill in the blank(s) with the appropriate word(s).
Exchange rates should change whenever a nation's:
a. Relative expectations change. b. Relative income changes. c. Relative interest rates change. d. Relative price level changes. e. All of the above are true.
If the nominal exchange rate is 4 Israeli shekels per U.S. dollar, and 0.178 Jordanian dinars per Israeli shekel, then there are ________ Jordanian dinars per U.S. dollar.
A. 5.618 B. 0.712 C. 0.045 D. 0.025