Self-fulfilling expectations challenge the idea of a well-functioning market, particularly in the exchange rate market, because the exchange rate:
A. is determined by rumors.
B. may be driven by supply and demand forces.
C. may not be driven by supply and demand forces.
D. is determined by traders and speculators.
Answer: C
Economics
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Studying the determination of prices in individual markets is primarily a concern of
A) positive economics. B) negative economics. C) macroeconomics. D) microeconomics.
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Refer to Figure 5-4.What is the economically efficient output level?
A) Q1 B) Q1 plus Q2 C) Q2 minus Q1 D) Q2
Economics