Under flexible exchange rates, the exchange rate is set by
A) the International Monetary Fund.
B) the U.S. Federal Reserve's Board of Governors.
C) the intersection of demand and supply curves in the currency markets.
D) negotiations among central banks of the major industrial powers.
Answer: C
Economics
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Which of the following changes does NOT shift the long-run aggregate supply curve?
A) a decrease in the labor force B) a fall in the price level C) a rise in number of college graduates in the labor force D) a tax hike that reduces the capital stock
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