Under flexible exchange rates, the exchange rate is set by
A. negotiations among central banks of the major industrial powers.
B. the U.S. Federal Reserve's Board of Governors.
C. the International Monetary Fund.
D. the intersection of demand and supply curves in the currency markets.
Answer: D
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Nonlinear price discrimination
A) sets the price consumers pay based on quantity purchased. B) is where the firm sets prices in geometrically or exponentially decreasing price points. C) is used in situations where consumers have no reservation prices. D) eliminates deadweight loss.
A decrease in the price of spaghetti noodles is likely to cause:
A. an increase in the demand for penne pasta due to a change in the price of a complementary good. B. an increase in the demand for penne pasta due to a change in the price of a substitute good. C. a decrease in the demand for penne pasta due to a change in the price of a complementary good. D. a decrease in the demand for penne pasta due to a change in the price of a substitute good.
Which of the following is the term for the baseline level of unemployment that occurs year-in and year-out and is determined by how well the structures of market and government institutions in the economy lead to a matching of workers and employers in the labor market?
a. Natural b. Structural c. Cyclical d. Full
The chairman of the Board of Governors of the Federal Reserve System is appointed by the Senate and approved by the President
a. True b. False