A fixed exchange rate
a. is a declared rate that is maintained by central bank intervention in the foreign exchange market
b. is a rate that is fixed by the forces of supply and demand
c. is a rate that is determined by trilateral arbitrage
d. "fixes" the value of a nation's price level
e. is a mechanism for eliminating a trade deficit
A
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When the Fed purchases government securities, it
A. increases banks' reserves and makes possible an increase in the money supply.
B. decreases banks' reserves and makes possible a decrease in the money supply.
C. automatically raises the discount rate.
D. uses discounting operations to influence margin requirements.
e. has no effect on either the money supply or the discount rate.
Refer to Figure 2-1. Which arrow represents the flow of goods and services?
a. A
b. B
c. C
d. D
Some sources of air pollution may tend to cause global cooling
Indicate whether the statement is true or false
Figure 4-12
Refer to . The supply curve S and the demand curve D1 indicate initial conditions in the market for college textbooks. A new government program is implemented that grants students a $30 per textbook subsidy on every textbook they purchase, shifting the demand curve from D1 to D2. Which of the following is true for this subsidy given the information provided in the exhibit?
a.
Textbook buyers will receive an actual benefit of $10 from the subsidy, while textbook sellers will receive an actual benefit of $20 from the subsidy.
b.
Textbook buyers will receive an actual benefit of $20 from the subsidy, while textbook sellers will receive an actual benefit of $10 from the subsidy.
c.
Textbook buyers will receive the full $30 benefit from the subsidy.
d.
Textbook sellers will receive the full $30 benefit from the subsidy.