Which of the following best describes exchanges rates that are determined by the demand and supply foreign exchange in the absence of official intervention?
A. fixed exchange rates
B. the gold standard
C. the Bretton Woods system
D. floating exchange rates
Answer: D
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If there is no Ricardo-Barro effect, a government budget surplus ________ the total supply of loanable funds and ________ the real interest rate
A) does not change; does not change B) increases; raises C) increases; lowers D) decreases; lowers E) decreases; raises
If you split your dessert with your date, you are using a ________ allocation method
A) first-come, first-served B) sharing equally C) contest D) personal characteristics E) command
If one dollar buys 10 pesos, then one peso buys ten cents of a dollar
Indicate whether the statement is true or false
The federal funds rate is closely tied to many interest rates on many types of loans. Which one is the exception?
a. Auto loan rates b. Adjustable rate mortgages c. Adjustable rate home equity loans d. 30-year Treasury bonds e. Business loans