Exxon Mobil wants to pay 160,000 to a German supplier. They get an exchange rate quotation from its own commercial bank and instructs it to debit their dollar account and pay 160,000 to the supplier's German account
If the exchange rate quoted is $1.2 per euro, how much is debited to Exxon Mobil's account? A) $160,000
B) $172,000
C) $180,000
D) $192,000
E) $150,000
D
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Free-floating exchange rates are determined by the
A. policies of the domestic government. B. policies of foreign governments. C. forces of demand and supply in the foreign exchange market. D. forces of demand and supply in the domestic money market.
Suppose that the market price of good A equals the firm's cost of producing that good, but it does not reflect any costs imposed on society. Which of the following is FALSE?
A) The good is priced too low. B) An external benefit is associated with good A. C) Resources are over-allocated in the production of good A. D) Too much of good A is being produced.
Moving downward on a downward sloping linear demand curve, the absolute value of the price elasticity of demand
A. is constant. B. decreases continuously. C. may either increase or decrease. D. increases continuously.