Refer to the graph below, which shows a change in the demand for pounds from D to D'. Under a system of fixed exchange rates, the:
A. Price of a pound will increase to $3
B. Price of a dollar will increase to 3 pounds
C. Shortage equal to ab would be met using international monetary reserves
D. Payment deficit will cause changes in price and income levels, which reestablishes the original exchange rate
C. Shortage equal to ab would be met using international monetary reserves
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What will be an ideal response?
Before World War II, state and local government revenue comprised about
a. less than one-third of total government revenues. b. 10% of total government revenues. c. more than half of total government revenues. d. 0% of total government revenues.
Current offers to purchase or sell scarce goods take account of the wants of future generations
A) if government intervenes to give the future a current voice. B) if people are able to predict future prices. C) only if people are concerned for the welfare of others yet unborn. D) only rarely because people are predominantly selfish.
Your purchase of a Gucci purse made in Italy would be classified as:
a. both c and d b. an investment good. c. a durable good. d. an import. e. an export.