If nothing else changes, the ________ the current exchange rate, the ________ is the expected profit from holding dollars, all other things remaining the same
A) higher; larger
B) lower; smaller
C) lower; larger
D) The premise of the question is wrong because the exchange rate has nothing to do with expected profit from holding dollars.
C
Economics
You might also like to view...
To earn an economic profit in the short-run, a monopolist sets marginal revenue equal to zero
a. True b. False Indicate whether the statement is true or false
Economics
Ceteris paribus, explain why it is that when a lower ceiling price is imposed below equilibrium price, a greater deadweight loss results
Economics