Under a flexible exchange rate system, one factor that does NOT directly affect rates of exchange is
A) changes in the inflation rate in each country.
B) changes in productivity in each country.
C) changes in gold holdings in each country.
D) changes in economic stability in each country.
Answer: C) changes in gold holdings in each country.
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Farmers can use their land to grow soy beans or corn. If the price of corn rises,
A) the supply of soybeans decreases and the soybean supply curve shifts leftward. B) the supply of soybeans increases. C) the supply of corn increases and the corn supply curve shifts rightward. D) the supply of corn increases.
Which of the following is NOT a benefit of money when used as a medium of exchange?
A) allowing individuals to specialize B) allowing individuals to pay off debts C) allowing for some economic efficiencies D) providing economic growth
Economic analysis that focuses on bounded rationality and psychological insights is known as: a. behavioral economics. b. Keynesian economics. c. Austrian economics
d. supply-side economics.
One way fiscal policy affects aggregate demand is:
A. indirectly through government spending. B. directly through tariffs. C. directly through taxation. D. indirectly through taxation.