A market in which the money of one nation is exchanged for the money of another nation is a:
A. resource market.
B. bond market.
C. stock market.
D. foreign exchange market.
D. foreign exchange market.
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Suppose that along the aggregate demand curve, real GDP equals $14.2 trillion when the GDP deflator is 90. If the GDP deflator were 95, real GDP along the aggregate demand curve would equal
A) more than $14.2 trillion but less than $14.8 trillion. B) less than $14.2 trillion. C) $14.2 trillion. D) more than $14.8 trillion.
Fiscal policy is likely to fail to correct stagflation in an economy because: a. it affects both aggregate demand and supply, although only aggregate supply needs to be changed
b. it affects both the aggregate demand and supply, although only aggregate demand needs to be changed. c. it affects aggregate demand only, although aggregate supply needs to changed. d. it affects aggregate supply only, although only aggregate demand needs to be changed. e. it affects either aggregate demand or aggregate supply, although both need to be changed simultaneously.