In the foreign exchange market, the exchange rate is volatile because the
A) factors that influence the supply of dollars also influence the demand for dollars.
B) demand for dollars changes more frequently than the supply of dollars.
C) both the demand curve for dollars and the supply curve of dollars are very flat.
D) supply of dollars changes more frequently than the demand for dollars.
E) None of the above is related to the volatility of the exchange rate.
A
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Which of the following is true?
a. All types of environmental problems can be solved merely by the enforcement of individual property rights. b. Environmental regulation cannot improve environmental quality. c. Income levels exert little impact on the demand for environmental quality. d. Markets often result in outcomes that are inefficient when it is difficult to assign and enforce property rights.
Other things the same, what happens in the long run to the price level and quantity of output after a contraction in aggregate demand?
Voluntary trade promotes economic progress because it
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