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
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In accordance with the law of supply, if the price doubled, the quantity supplied would generally
a. rise. b. fall. c. double. d. drop by half.
For a bank to have lending power, its required reserves must:
a. be smaller than its legal reserves. b. exceed its legal reserves. c. be smaller than its excess reserves. d. exceed its excess reserves. e. exceed its vault cash.
Average revenue is slightly higher than price
a. True b. False Indicate whether the statement is true or false
Which of the following is most likely to be sold in an oligopoly market?
A) pizza B) wireless service C) electricity D) cotton