The major factor contributing to the depreciation of the Euro in 1999 and 2000 was:
A) low interest rates in the U.S. relative to Europe.
B) high interest rates in the U.S. relative to Europe.
C) trade barriers in Europe.
D) none of the above.
B
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One of the reasons the pound depreciated in 1992 was:
A) because Britain was running out of stock of foreign currency reserves. B) because Britain started exporting more than it imported C) because Britain started importing more than it exported. D) because speculative trading had decreased in foreign exchange markets.
Comment on the following: "Present-biased people are impatient, but impatient people don't necessarily have to be present-biased."
What will be an ideal response?
According to the crude quantity theory of money, if P rose by 20%, then __________.
Fill in the blank(s) with the appropriate word(s).
A price-discriminating monopoly charges the lowest price to the group that:
A. has the most elastic demand. B. purchases the largest quantity. C. engages in the most arbitrage. D. is least responsive to price changes.