Exchange rates determined by the forces of demand and supply are called
a. fixed exchange rates.
b. floating exchange rates.
c. equilibrium exchange rates.
d. dirty exchange rates.
b
You might also like to view...
Government can correct for negative externalities by
A) decreasing taxes. B) increasing taxes or regulation. C) allowing the market system to correct the problem. D) decreasing the costs to those responsible for the externality.
Suppose the market rate of interest is 5%. The local government imposes a tax of $40 per acre on all land located within city limits. The year after the tax is imposed, Val sells an acre of land on which she had planned to build a house. How much was Val's share of the economic burden of the tax?
a. $0. b. $40. c. $200. d. $800.
A bank has $390 million in assets and $330 million in liabilities. The bank's net worth is _____________ million and its leverage ratio is __________________
A) $360; 1.08 to 1 B) $60; 0.15 to 1 C) $40; 3.75 to 1 D) $60; 6.5 to 1
Figure 10-8
If the economy were operating at point a in , the real rate of interest would tend to
a.
decrease and move the economy toward point c.
b.
decrease and move the economy toward point b.
c.
increase and move the economy toward point c.
d.
increase and move the economy toward point b.