Traditionally, nations pegged their currencies to _______, and so trade was accomplished with _______ exchange rates.
A) the pound sterling; floating
B) gold; fixed
C) the U.S. dollar; floating
D) silver; fixed
Ans: B) gold; fixed
You might also like to view...
Use the following table to answer the next question. GDP figures are in billions of dollars. YearNominal GDPReal GDPPrice Index15,2004,800--25,500--11235,7505,000--What was real GDP in year 2?
A. $4,820 billion B. $4,875 billion C. $5,320 billion D. $4,911 billion
"The percentage change in quantity demanded divided by the percentage change in price" represents
A) the law of demand. B) the law of one price. C) the price elasticity of demand. D) the responsiveness of consumers to a change in quantity demanded. E) none of the above.
According to the Lucas critique, if past increases in the short-term interest rate have always been temporary, then
A) the term-structure relationship using past data will then show only a weak effect of changes in the short-term interest rate on the long-term rate. B) the term-structure relationship using past data will show no effect of changes in the short-term interest rate on the long-term rate. C) one cannot predict the term-structure relationship as it depends on expectations. D) the term-structure relationship using past data will nevertheless show a strong effect of changes in the short-term interest rate on the long-term rate because of a change in the way expectations are formed.
The existence of wage-related rent
a. is explained by the fact that people have different opportunity costs b. is explained by the fact that some people who work also own land c. indicates that wage rates can be higher than rents d. is a contradiction because workers' incomes derive from labor e. result from the different productivities of workers