The only reason that exchange rates change is because overall price levels in the countries change
Indicate whether the statement is true or false
FALSE
Explanation: Relative price changes, in addition to inflation, can change the exchange rates.
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Suppose an economy is operating at its maximum sustainable output rate. Neither recession nor economic boom are present. Which of the following would be true?
a. The economy would be considered at full employment. b. Actual GDP would exceed potential GDP. c. Actual unemployment will be less than the natural rate of unemployment. d. One hundred percent of the labor force is employed.
In 2012, the number of workers per Social Security beneficiary was approximately ____; by the year 2030, this figure is expected to ____
a. 5; increase to approximately 8 b. 2.9; fall to approximately 2.2 c. 2.2; increase to approximately 3.2 d. 8; fall to approximately 5