If exchange rates are determined in a floating rate system, what determines the value of a U.S. dollar in terms of euros?
A. Government exchange rate policies
B. IMF rules and policies
C. Demand and supply
D. Central bank interventions
Answer: C
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As one moves down a straight-line demand curve, the elasticity decreases.
Answer the following statement true (T) or false (F)
A decrease in the price of oil will cause the:
A. short-run aggregate supply curve to shift to the right. B. aggregate demand curve to shift to the right. C. short-run aggregate supply curve to shift to the left. D. long-run aggregate supply curve to shift to the left.
The Emission Trading Scheme of the European Union
A. allowed firms to benefit from emitting pollutants. B. sets the amount of per-unit tax on each pollutant. C. created a market for pollutants. D. sets a cap on the amount of pollutants in each country.