Which of the following best describes a graph showing the supply and demand for foreign exchange?
a. The quantity of foreign exchange is on the horizontal axis and the quantity of the domestic currency is on the vertical axis.
b. The quantity of the domestic currency is on the horizontal axis and the quantity of foreign exchange is on the vertical axis.
c. The quantity of foreign exchange is on the horizontal axis and the price of foreign exchange in terms of the domestic currency is on the vertical axis.
d. The quantity of foreign exchange is on the vertical axis and the price of foreign exchange in terms of the domestic currency is on the horizontal axis.
e. The quantity of the domestic currency is on the horizontal axis and the price of foreign exchange in terms of dollars is on the vertical axis.
C
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The social costs associated with some policy initiative are
a. readily identified b. described as the spending needed to compensate society for the resources used so that its utility level is maintained c. must account for all price, output, and income effects linked to that initiative d. all of the above e. (b) and (c) only
Do competitive markets use resources efficiently? Explain why or why not
What will be an ideal response?
What is the key macroeconomic issue of the short run and what is the key macroeconomic issue of the long run?
What will be an ideal response?
Which of the following is true of the inflation experienced by the Latin American countries during the 1980s and early 1990s? a. In 1990, annual inflation in Brazil and Argentina was below 10 percent
b. In the late 1980s, Brazil and Argentina experienced a steady inflation of 4 percent. c. In the late 1980s, Brazil and Argentina experienced deflation. d. In 1990, annual inflation in Brazil and Argentina climbed to over 2000 percent.