Exchange rate changes are
A) not very volatile because of offsetting changes in demand and supply.
B) very volatile because supply and demand changes reinforce each other.
C) infrequent because the exchange rate rarely changes.
D) not very volatile because of government intervention.
E) very volatile because of government intervention in the market.
B
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If real GDP falls, then so must nominal GDP.
Answer the following statement true (T) or false (F)
If the price of crude oil decreases, then this would most likely:
A. Decrease aggregate supply in the U.S. B. Increase aggregate supply in the U.S. C. Increase aggregate demand in the U.S. D. Decrease aggregate demand in the U.S.
The long-run average cost curve shows the lowest possible average cost for each output level, given that all inputs are variable.
Answer the following statement true (T) or false (F)
If new manufacturers enter the computer industry, then, holding all other things constant,
a. each "old" manufacturer must sell fewer computers than before. b. some "old" manufacturers must exit the industry. c. the equilibrium price of computers must rise. d. the equilibrium quantity demanded of computers must rise.