What would the situation be at $1.25 = 1 euro?
a. The value of $1 would be 1.25 euros.
b. The quantity of euros demanded would be greater than the quantity supplied.
c. The foreign exchange market would be in equilibrium.
d. The quantity of euros supplied would be greater than the quantity demanded.
b. The quantity of euros demanded would be greater than the quantity supplied.
You might also like to view...
If money demand does not depend upon income, then
a. monetary policy cannot have any effect upon the economy. b. monetary policy will only affect the level of the price level. c. monetary policy will only affect interest rates. d. monetary policy will have a larger impact on income.
Featherbedding means that
A) company management receives a cut from the collected union wages. B) employers are force to hire apprentices. C) employers are forced to hire more workers than they want to. D) a union can join a sympathy strike.