A fixed exchange rate is:
a) set by the government.
b) also called a floating exchange rate.
c) determined in international currency exchange markets.
d) set equal to the prime rate.
Ans: a) set by the government.
You might also like to view...
If a 5 percent reduction in the price of a commodity results in a 3 percent increase in the quantity demanded, demand is said to be
a. perfectly elastic. b. elastic. c. unit elastic. d. inelastic. e. perfectly inelastic.
A commodity money standard exists when exchange rates are:
a. artificially pegged to the price of oil. b. fixed in terms of gold, thus creating flexible exchange rates between countries. c. fixed in terms of gold, thus creating fixed exchange rates between countries. d. allowed to fluctuate based on the values of different currencies. e. fixed, based on the values of different currencies, in terms of some commodity.
GDP is defined as the
a. value of all goods and services produced within a country in a given period of time. b. value of all goods and services produced by the citizens of a country, regardless of where they are living, in a given period of time. c. value of all final goods and services produced within a country in a given period of time. d. value of all final goods and services produced by the citizens of a country, regardless of where they are living, in a given period of time.
When marginal cost is greater than marginal benefit at the current activity level, the decision maker can increase net benefit by decreasing the activity because
A. net benefit is upward sloping at this point. B. total cost will fall by more than total benefit will fall. C. marginal cost is rising faster than marginal benefit is falling. D. total benefit will rise by more than total cost will rise.