How is the foreign exchange market similar to the stock market?
What will be an ideal response?
Both markets are dominated by traders, rather than consumers (or producers) of the items bought and sold. Transaction costs are low and close substitutes abound, so transactions are frequent, and participants respond quickly to anything that influences their incentive to hold more or less. Though "fundamentals" matter, transactions are heavily influenced, also, by what other participants are doing or are expected to do. The result of all this is that prices are volatile and unpredictable.
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The oldest hamburger chain in the United States is White Castle, which was founded in 1921 . Most of their restaurants in the early days were located in urban areas. In the 1950s they lost much of their business to McDonalds and Burger King
They were slow to respond in building restaurants on highways and in suburbs. How did the advent of the highway system in the 1950s alter residential location patterns and how might this have affected the marginal revenue product of burger chains in both urban and suburban areas. Why did sales drop off in the urban areas where White Castle had earned its initial success?
Open market purchases raise the ________ thereby raising the ________
A) money multiplier; money supply B) money multiplier; monetary base C) monetary base; money supply D) monetary base; money multiplier