Exchange rates that are allowed to fluctuate in the open market in response to changes in supply and demand are known as
A) fixed exchange rates.
B) gold exchange rates.
C) flexible exchange rates.
D) IMF exchange rates.
C
You might also like to view...
Economists assume that
A) people put other people's interests ahead of their own. B) individuals behave in unpredictable ways. C) consumer behavior is explained by the existence of unlimited resources. D) optimal decisions are made at the margin.
Long-term contracts are desirable for both firms and workers for each of the following reasons EXCEPT one. Which of the following does NOT explain the desirability of long-term contracts?
A) Wage negotiations are costly and time consuming on both sides. B) Contracts insulate workers from changing economic conditions such as decreases in aggregate demand. C) The incidence of strikes decreases because the contracts are binding for three years. D) Contracts reduce uncertainty.