Which of the following does not cause exchange rate fluctuations?
a. Changes in absolute international expectations but not relative international expectations.
b. Central bank interventions in the foreign exchange market.
c. Changes in relative international expectations.
d. Relative international price levels.
e. Changes in relative international incomes.
.A
You might also like to view...
The difference between nominal GDP and real GDP is
A) the indirect taxes used in their calculations. B) the prices used in their calculations. C) that nominal GDP includes the depreciation of capital and real GDP does not. D) that nominal GDP includes net exports of goods and services and real GDP includes net imports. E) that real GDP includes the depreciation of capital and nominal GDP does not.
There are different interest rates associated with many types of securities. Which of the following statements is correct?
A) they vary depending on the liquidity of the security B) they vary depending on the risk associated with the security C) except in very unusual times, most interest rates move together D) all of the above E) none of the above
In the allocation of resources between present and future
a. the market works imperfectly. b. the market works perfectly. c. centrally planned economies are more efficient than market economies. d. the invisible hand guarantees efficiency in market economies.
A reduction in the capital gains tax, often advocated by proponents of supply-side economics, is supposed to stimulate increased
a. consumer spending. b. net exports. c. investment spending. d. government spending.