If the U.S. dollar depreciates against the euro, what can the Fed do to keep the dollar's exchange rate stable?
A) decrease U.S. imports by increasing tariffs
B) nothing
C) buy dollars in the foreign exchange market
D) sell dollars in the foreign exchange market
E) buy euros in the foreign exchange market
C
Economics
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If the euro faces a currency crisis with its value falling from $1.40 per euro to $1.20 per euro, who would benefit the most?
a) An American car manufacturer trying to export cars to Spain. b) Universal Studios Orlando, which wants more European tourists to visit its theme parks. c) The Brown family from Florida who plans to visit Paris next month. d) Jared, an American investor who purchased a 10,000 euro bond last year.
Economics
Average fixed costs rise continuously as quantity of output rises.
a. true b. false
Economics