The exchange rate is
a. the rate at which one currency is traded for another
b. always constant
c. the tax a foreign nation imposes to change its currency into dollars
d. irrelevant to those who do not travel to foreign countries
e. controlled by the Federal Reserve
A
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Explain how the arrival of inexpensive broadband has changed the PPF
What will be an ideal response?
An unexpected sharp reduction in inflation will most likely result in
a. the rapid growth of output and employment. b. a reduction in the actual rate of unemployment. c. a reduction in the natural rate of unemployment. d. a temporary increase in unemployment and a decline in real output.
Exhibit 6A-5 Consumer Equilibrium
?
Given the budget lines and indifference curves shown in Exhibit 6A-5, if the budget line shifts from AB to AC, then the equilibrium points X and Y:
A. result from a decrease in the price of good X. B. are two points along a downward sloping demand curve for good X. C. result from a decrease in the consumer's budget. D. result from a decrease in the price of good Y.
A U.S. importer purchases 5,000 British pounds for $10,000. The rate of exchange is
A. $1 = 1. B. $1 = 2. C. $1 = .5. D. $2 = 1.