If foreign exchange rates are determined by the interaction of supply and demand forces for the various currencies, then the exchange rate is:
a. fixed.
b. government-determined.
c. set by the value of gold.
d. floating.
e. improper.
d
You might also like to view...
A teenaged babysitter is similar to a firm in a perfectly competitive industry in that, for both
A) average costs of production do not change when their industry expands. B) fixed costs are lower than variable costs. C) there are many other suppliers of similar goods or services. D) the implicit costs of production exceed the explicit costs of production.
Suppose the price of an item in a perfectly competitive market is $3. For a firm in this market, MC = MR at an output of 100 units. The average total cost at this output level is $4 per unit, and TVC is $80. We may conclude that
A) the firm should shut down because TC > TR. B) the firm should continue to produce because P>AVC. C) the firm should shut down because its TFC is $320 and its TC is $400. D) the firm should shut down because other firms will enter the industry as the market is perfectly competitive.
A product can be classified as an inferior good if an increase in the income causes
a. A decrease in the quantity demanded b. A decrease in demand c. An increase in demand d. An increase in the quantity demanded.
The Federal Reserve tends to increase the money supply each year
a. True b. False