Flexible exchange rates occur when
A) speculators bet that a currency will soon depreciate.
B) governments and central banks spend foreign exchange to prop an exchange rate at a certain level.
C) no one knows the true value of a currency.
D) exchange rates are determined by forces of supply and demand.
D
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An externality is an event that
A. is external to economics. B. always brings harm to someone in the economy. C. is incidental to some market activity. D. harms the economy as a whole rather than a particular person.
If a hurricane were to wipe out the majority of the eastern seaboard in the United States:
A. neither the short-run nor long-run aggregate supply curves would be affected. B. only the long-run aggregate supply curve would shift left. C. only the short-run aggregate supply curve would shift left. D. the long-run and short-run aggregate supply curves would both shift left.