The exchange rate between currencies depends on
A) the interest rate that can be earned on deposits of those currencies.
B) the interest rate that can be earned on deposits of those currencies and the expected future exchange rate.
C) the expected future exchange rate.
D) national output.
E) the interest rate that can be earned on deposits of those countries and the national output.
B
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Define and give an example of how a spell of frictional unemployment can begin
What will be an ideal response?
When quantity moves proportionately the same amount as price, demand is
a. elastic, and the price elasticity of demand is 1. b. perfectly elastic, and the price elasticity of demand is infinitely large. c. perfectly inelastic, and the price elasticity of demand is 0. d. unit elastic, and the price elasticity of demand is 1.
Classical economists assumed that
A. wages were flexible. B. individuals did not suffer from money illusion. C. prices were flexible. D. all of these
The first economist to systematically analyze market failure was
A) Adam Smith. B) Ronald Coase. C) A. C. Pigou. D) J. E. Meade.