If in a system of fixed exchange rates the dollar price of euros is above the market equilibrium level:
A. gold will flow from the United States to Europe.
B. there will be a surplus of euros.
C. the U.S. government will have to ration euros to U.S. importers.
D. there will be a shortage of euros.
B. there will be a surplus of euros.
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Jonathan likes to consume pizzas and burgers. If both the goods have diminishing marginal utility, then Jonathan's indifference curve is likely to be _____
a. a straight line b. downward sloping c. L-shaped d. U-shaped
Dan is the pricing director for a near monopoly. He has been warned to avoid predatory pricing. Which of the following actions does Dan need to avoid?
a. pricing products at exactly the same level as competitors b. charging higher prices when raw material costs increase c. charging different prices to different customers based on their occupation d. lowering prices to bankrupt his competitors, then raising prices dramatically