Flexible exchange rates exist when
A) no one knows what the true value of a currency is.
B) governments and central banks spend foreign reserves to prop up an exchange rate at a certain level.
C) exchange rates are determined by forces of supply and demand.
D) speculators bet that a currency will soon be depreciated.
C
You might also like to view...
A cost of aggregation is that:
A. broad economic trends are obscured B. details about individual households and firms are lost C. economy-wide totals cannot be obtained D. the "big picture" cannot be studied
The revenue collected by an income tax is a function of the average tax rate
a. True b. False
Which of the following strategies that a union might pursue would result in the lowest wage rate for its members?
a. Maximizing the total wage bill b. Maximizing employment of its members c. Restricting union membership severely d. Maximizing the total economic rent obtained by its members
Economists call all the goods generated by a firm its total ______.
a. margin b. output c. production d. sales