Which of the following can be categorized as a composite currency?
a. Italian lira
b. European Currency Unit
c. Pound
d. Australian dollar
e. Danish Krone
b
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As the payments system evolves from barter to a monetary system,
A) commodity money is likely to precede the use of paper currency. B) transaction costs increase. C) the number of prices that need to be calculated increase rather dramatically. D) specialization decreases.
Which of the following helps explain why the aggregate demand curve slopes downward?
a. If the price level increases, the purchasing power of the fixed quantity of money decreases, causing people to buy less. b. If the price level increases, the purchasing power of the fixed quantity of money increases, causing people to buy more. c. If domestic prices increase, we substitute domestic goods for imported goods. d. If domestic prices decrease, we substitute imported goods for domestic goods.
A managed floating exchange rate system is characterised by which of the following:
(a) The exchange rate varies with the market forces of supply and demand. (b) Some intervention by Central Banks is occasionally required. (c) Intervention by Central Banks usually occurs when the currency is either very strong or very weak. (d) All of the above.
Assume baseball player salaries are fully determined before the season starts. From the point of view of the baseball team owner, player salaries during the course of the season are then
A) variable costs. B) marginal costs. C) fixed costs. D) average costs.