Under a system of floating exchange rates, an excess demand for a particular currency will lead to a(n)
A. long-term surplus of that currency.
B. appreciation of that currency.
C. depreciation of that currency.
D. long-term shortage of that currency.
Answer: B
Economics
You might also like to view...
In the above figure, the economy is initially at point B. Then the price level falls by 10. The wealth effect will help
A) move the economy to point A. B) move the economy to point C. C) move the economy to point D. D) keep the economy to point B.
Economics
The fact that every dollar that the government spends or transfers must ultimately be provided by the taxes and user charges it collects plus government borrowing is known as the
A) government balance sheet constraint. B) government budget constraint. C) tax collection constraint D) user charge constraint.
Economics