The most common tool of analysis in international finance for measuring the average value of a currency relative to several other currencies is
A) bilateral exchange rates.
B) cross exchange rates.
C) exchange rate indexes.
D) All of above.
C
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If market prices help inform individuals about the relative scarcities of goods and services, then abolishing market prices would
A) finally allow people to overcome scarcity. B) eliminate important information. C) abolish the dog-eat-dog mentality of market competition. D) tend to create permanent surpluses of most goods. E) accomplish all of the above.
What are the main aspects of economic life that macroeconomics analysis is most concerned with?
What will be an ideal response?
When a negative externality exists, _______________________ and thus _______________ intervention may be needed to achieve efficiency
A) external costs are necessarily greater than private costs; government B) social costs equal private costs; no government C) social costs are less than private costs; government D) social costs are greater than private costs; government E) none of the above
Suppose a monopoly producer is also a monopsonist in the labor market. Demand for the output is p = 100 - Q. The production function is Q = L, and the labor supply curve is w = 10 + L. How much labor does the firm hire? What wage is paid?
What will be an ideal response?