When exchange rates are flexible, they are
A. Determined by proclamation of the monetary authorities of a country.
B. Permitted to vary with changes in supply and demand in the foreign exchange market.
C. Determined by the provisions of the Bretton Woods agreement.
D. Determined by the relative levels of gold reserves.
Answer: B
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Refer to Scenario 17.2. The highest level of y* that can be set and still have the high-productivity people choose to meet it is
A) 90. B) 60. C) 30. D) 22.5. E) 15.
Susan, a U.S. citizen, builds and operates a kennel in France. This action is an example of
a. investment for Susan and U.S. foreign direct investment. b. investment for Susan and U.S. foreign portfolio investment. c. U.S. foreign direct investment and U.S. domestic investment. d. U.S. foreign portfolio investment and U.S. domestic investment.