A fixed exchange rate is:
a. determined by the forces of supply and demand.
b. the value of a nation's money in gold.
c. the value of a nation's money determined by the World Bank.
d. none of these.
b
You might also like to view...
Refer to Figure 11.4. Which diagram illustrates the effect of a decrease in government spending?
A) A B) B C) C D) D
Which macroeconomic model dominated macroeconomic analysis from the early post-World War II era until the late 1960s?
a. The monetarist model b. The Keynesian model c. The classical model d. The new classical model e. None of the above
If the cross price elasticity of demand for tacos with respect to burritos equals +2.5, then: a. a 1% increase in the quantity of burritos purchased will lead to a 2.5% increase in the price of a taco
b. a 10% increase in the price of a burrito will lead to a 25% increase in the quantity of tacos demanded at a given price. c. a 1% decrease in the price of a burrito will lead to a 2.5% increase in the quantity of tacos demanded at a given price. d. a 1% increase in the quantity of tacos purchased will lead to a 2.5% increase in the price of a burrito.
Over time, the general movement in the United States has been toward
A. complete elimination of tariffs, import quotas, and export subsidies. B. higher tariffs and stricter import quotas. C. managed trade. D. relatively more free trade.