The exchange rate can be very volatile, yet the quantity of dollars traded might not change much because
A) the Fed is constantly intervening by buying and selling dollars.
B) there is only limited quantity of dollars in the foreign exchange market.
C) supply of dollars and the demand for dollars often change in opposite directions.
D) supply of dollars and the demand for dollars often change in the same directions.
E) both the demand curve for dollars and the supply curve of dollars are horizontal.
C
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A currency depreciation is usually inflationary
a. True b. False Indicate whether the statement is true or false
Fixing exchange rates and limiting the convertibility of currency will
a. improve international trade. b. increase the ability of people to gain from specialization. c. lead to black markets and less trade. d. increase productivity and living standards.
When a person holds money, they give up
A. the pleasure associated with spending money. B. the interest that could have been earned if the money had been changed into an interest-bearing asset. C. the pleasure associated with saving money. D. nothing, since the person can always use the money to buy goods or services or interest-bearing assets.
The experience of the Soviet Union proves that higher education
a. always leads to productivity increases. b. always raises per capita GDP growth. c. has different effects. d. has positive effects.