All of the following are market determinants of exchange rates EXCEPT
A) changes in productivity in one country relative to another.
B) changes in real interest rates in one country relative to another.
C) changes in product preferences between countries.
D) changes in the relative prices of goods and services within a country.
Answer: D
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The demand for a cup of coffee is ______________ than is the demand for a dinner at a fancy restaurant because _________________.
A. more price elastic; a cup of coffee requires a smaller portion of one's income. B. less price elastic; a cup of coffee requires a smaller portion of one's income. C. less price elastic; a cup of coffee is more of a luxury. D. more price elastic; a cup of coffee is more of a luxury.
Microeconomics is the study of how households and firms make decisions and how they interact in specific markets
a. True b. False Indicate whether the statement is true or false
Which of the following statements best describes the price, output, and profit conditions of monopolistic competition?
A. Price will equal marginal cost at the profit-maximizing level of output; profits will be positive in the long-run. B. Price will always equal average variable cost in the short run and either profits or losses may result in the long run. C. Marginal revenue will equal marginal cost at the short run, profit-maximizing level of output; in the long run, economic profit will be zero. D. Marginal revenue will equal average total cost in the short run; long-run economic profits will be zero.
The figure below presents information for a one-shot game.Firm AFirm B??Low PriceHigh Price?Low Price(2,2)(10,-8)?High Price(-8,10)(6,6)What are secure strategies for firm A and firm B respectively?
A. (high price, low price) B. (high price, high price) C. (low price, low price) D. (low price, high price)