Many experts believe that the major determinant of exchange rates in the short run is relative
a. price levels.
b. income levels.
c. money supplies.
d. interest rates.
d
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Which of the following are considered factors of production? I. Land II. Labor III. Physical capital IV. Entrepreneurship
A) I and II only B) I and III only C) I, II and III only D) I, II, III and IV
Economists believe having higher prices for scarcer resources promotes efficiency.
Answer the following statement true (T) or false (F)
The example of an inflationary gap in 2006–2007 suggested that the economy adjusts
A. rapidly to inflationary gaps by lowering prices. B. rapidly to inflationary gaps by raising prices. C. slowly to inflationary gaps by lowering prices. D. slowly to inflationary gaps by increasing inflation.
By imposing tolls on the drivers that drive during the busiest times, a government would be attempting to:
A. internalize an externality. B. institute a progressive tax. C. externalize an internality. D. encourage driving to generate revenue.