Under a system of floating exchange rates, a surplus in a currency will lead to a(n)
A. long-term surplus of that currency.
B. depreciation of that currency.
C. appreciation of that currency.
D. long-term shortage of that currency.
Answer: B
You might also like to view...
To lower the federal funds rate, the Fed conducts an open market ________ of securities which ________
A) purchase; increases the demand for reserves B) sale; increases the supply of reserves C) purchase; decreases the demand for reserves D) sale; increases the demand for reserves E) None of the above answers is correct.
When a grocery store offers discount coupons in Sunday papers, it is trying to
a. Price discriminate b. Undercut its competition c. Reward the frequent readers d. Provide a social service
According to the table shown, what happened to the cost of living from 2013 to 2014? The cost of living:
A. increased; consumers became worse off than they would have been if the price level had not changed.
B. decreased; consumers became worse off than they would have been if the price level had not changed.
C. increased; consumers became better off than they would have been if the price level had not changed.
D. decreased; consumers became better off than they would have been if the price level had not changed.
Many economists are critical of the minimum wage because they believe that it:
A. hurts the efforts of labor unions. B. reduces the number of available job opportunities. C. conflicts with policies designed to equalize the distribution of income. D. causes labor shortages in affected markets.