Which of the following statements is TRUE about a vehicle currency?
A) It is widely used to denominate contracts made by parties who reside in the country that issues the vehicle currency.
B) The dollar is sometimes called a vehicle currency because of its pivotal role in many foreign exchange deals.
C) There is much skepticism that the euro will ever evolve into a vehicle currency on par with the dollar.
D) The pound sterling, once second only to the dollar as a key international currency, is beginning to rise in importance.
E) Vehicle currencies include nondeliverable currencies like the renminbi.
B
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Which of the following is true of long-run costs and short-run costs? a. In the long run, changes in variable costs and fixed costs will cancel each other out. b. In the long run, no costs are truly fixed costs. c. In the short run, no costs are truly fixed costs
d. In the short run, marginal costs are fixed costs.
At price of $1.25, a paper manufacturer is willing to supply 150 spiral notebooks per day. At a price of $1.50, the paper manufacturer is willing to supply 175 spiral notebooks per day. Using the midpoint method, the price elasticity of supply is about
a. 1.18. b. 1.00. c. 0.85. d. 0.25.