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 gold holdings in each country.
C. changes in productivity in each country.
D. changes in economic stability in each country.
Answer: B
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The use of pollution permits by the government to reduce pollution is:
A. common in several parts of the United States. B. theoretically interesting, but untried in the United States. C. common in the third world. D. workable in theory but unworkable in practice.
When a currency decreases in value relative to another currency, the currency has
A) declined. B) appreciated. C) accelerated. D) decelerated. E) depreciated.
Most economists believe that the market __________ produce nonexcludable public goods because of __________.
A. will; the monetary incentive they have to produce them B. will not; the externality problem C. will not; the free rider problem D. will; the market shortage that often accompanies the production of public goods. E. none of the above
Imagine that personal preferences and advertising change and the demand curve shifts outward (to the right). How will this impact production?
A) It will have no impact on production. B) It will cause the quantity of output in production to increase. C) It will cause the quantity of output in production to decrease. D) It will cause technology, labor, and capital in production to increase.