What determined the exchange rates among currencies under the gold standard, and what caused the gold standard to collapse?
What will be an ideal response?
Under the gold standard, the exchange rate between two currencies was automatically determined by the quantity of gold in each currency. The gold standard collapsed during the Great Depression because countries wanted to fight the Depression with expansionary monetary policy, but under the gold standard the central banks lacked control of the money supply.
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If the expected future U.S. exchange rate falls, then in the foreign exchange market the current
A) supply of dollars decreases. B) demand for dollars increases. C) quantity supplied of dollars decreases. D) supply of dollars increases. E) quantity supplied of dollars increases.
Producer surplus is the difference between the lowest price a firm is willing to accept for a product and the price it actually receives for the product
Indicate whether the statement is true or false