Considerable day-to-day volatility in major exchange rates is caused by
A) shifts in tastes or preferences for domestic versus foreign goods.
B) international capital mobility and expectations of future exchange rates.
C) sudden changes in productivity in one nation versus others.
D) highly variable inflation rates in some industrialized countries.
B
You might also like to view...
Ways to "game" the budgeting process include
a. delaying sales if just short of a target b. delaying expenses if just short of a target c. accelerating sales once a target is met d. delaying expenses costs once a target is met
What happens to equilibrium price when simultaneously the demand curve shifts left and the supply curve shifts right?
A. Equilibrium price will increase. B. Equilibrium price will decrease. C. Equilibrium price will remain the same. D. Equilibrium price may increase, decrease, or remain the same depending on the magnitude of the shifts in demand and supply.