Flexible exchange rates occur when
A) speculators bet that a currency will soon depreciate.
B) governments and central banks spend foreign exchange to prop an exchange rate at a certain level.
C) no one knows the true value of a currency.
D) exchange rates are determined by forces of supply and demand.
Answer: D
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The market for high-end cars is likely to be a(n) ________
A) perfect competition B) monopolistic competition C) monopoly D) oligopoly
Long-run average cost is defined as:
A) the minimum average cost of producing any level of output when all inputs are variable. B) the minimum average cost of producing any level of output when the amount of capital is varied and all other inputs are held constant. C) the average of the short-run costs associated with each amount of capital employed by the firm. D) the minimum average cost of producing any level of output when all inputs are fixed.