Suppose a currency's value in the foreign exchange market is determined solely by market supply and demand without any intervention by the government authority, the currency has
A) a fixed exchange rate.
B) a gold standard.
C) a price control in its exchange rate.
D) a floating exchange rate.
D
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Initially, the creation of railroads was opposed in some countries because:
A) it was likely to increase poverty. B) it was likely to increase the cost of trade. C) it was likely to provide more power to monarchs and rulers. D) it was likely to initiate creative destruction.
The deadweight loss represent the sum of added consumer and producer surplus if the firm would produce the quantity where P = MC
Indicate whether the statement is true or false
When economic profits are positive, accounting profits could be:
A. negative. B. zero. C. positive. D. All of these are possible.
A per-unit government tax on producers of a good tends to
A. increase the supply of the good. B. not have any effect on the good's supply. C. cause an upward movement along the supply curve. D. reduce the supply of the good.