The two most important financial markets are the _____ market and the _____ market

Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D1 and S1 (point A)

If the price of motorcycle engines increases, and the wages of motorcycle workers increase, how will the equilibrium point change? A) The equilibrium point will move from A to E. B) The equilibrium point will move from A to C. C) The equilibrium will first move from A to B, then return to A. D) The equilibrium point will move from A to B.

When a country occasionally buys or sells currencies to influence the exchange rate, but usually lets market forces determine the exchange rate, it has a:

A. fixed exchange rate. B. partially-flexible exchange rate. C. flexible exchange rate. D. gold standard.