If one day the dollar is trading at 1.00 euro per dollar and the next day the exchange rate is 0.88 euros per dollar, one possible factor that might have led to this change is
A) an increase in the U.S. interest rate.
B) a decrease in the European interest rate.
C) the Fed buying dollars.
D) the Fed selling dollars.
E) an increase in the expected future exchange rate.
D
Economics
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A perfectly elastic demand:
A. means consumers are extremely sensitive to a change in price. B. means quantity demanded is unchanged if the price changes by any amount. C. is demonstrated by a vertical demand curve. D. has a price elasticity of 1.
Economics