The demand and supply of two countries' currencies determine
A. the MPM for each country.
B. the trade balance for each country.
C. a flexible exchange rate between the two countries.
D. a fixed exchange rate between the two countries.
Answer: C
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The conclusion that the level of output is efficient at the market equilibrium rests on all of the following assumptions EXCEPT that __________.
A. buyers and sellers are well-informed B. there are no external costs or benefits C. the government regulates price and output D. the market is perfectly competitive
A theory is an untested assertion of alleged fact.
Answer the following statement true (T) or false (F)
Based on the graph showing rational expectations and the AD/AS model, how do shifts in the short-run aggregate supply and aggregate demand curves influence RGDP?
a. Since both curves move to the left, RGDP decreases.
b. Since both curves move to the right, RGDP increases.
c. Since the curves move equally in opposite directions, RGDP does not change.
d. Since both curves become vertical, RGDP becomes zero.
African-American worker Jackson earns $30,000 per year; white worker Johnson earns $40,000 per year. On the basis of this information we can conclude that:
A. it is not clear whether discrimination is present in this situation. B. there are no discriminatory forces at work in the labor market. C. Jackson is being discriminated against, but the dollar amount is unclear. D. Jackson is being discriminated against in the amount of $10,000 per year.