One should expect the forward exchange market to flourish
A) under a fixed exchange rate regime.
B) under a flexible exchange rate regime.
C) under neither fixed nor flexible exchange rate regimes.
D) under both fixed and flexible exchange rate regimes.
E) only under a gold standard.
B
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Indicate whether the statement is true or false
Data for an economy show that the unemployment rate is 6 percent, the participation rate 60 percent, and 200 million people 16 years or older are not in the labor force. How many people are unemployed this economy?
A. 43.2 million B. 12.0 million C. 18.0 million D. 28.8 million
The figure below illustrates the market for British pounds. D£ and S£ are the nonofficial demand and supply curves of the British pounds, respectively.
Who among the following groups will most likely benefit if the exchange rate is pegged at $2.50 per pound?
A. British importers B. Import-competing producers in the U.K. C. U.S. importers D. British exporters
The aggregate supply curve (short run) is upsloping because:
A. wages and other resource prices match changes in the price level. B. the price level is flexible upward but inflexible downward. C. per-unit production costs rise as the economy moves toward and beyond its full- employment real output. D. wages and other resource prices are flexible upward but inflexible downward.