A major cause of volatility in the value of the U.S. dollar is ________
A) foreign exchange interventions by the U.S. Treasury
B) change in U.S. net exports
C) change in the expected value of the dollar
D) disagreement among policy makers
C
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Assume someone organizes all farms in the nation into a single-price monopoly. As a result, the amount of food produced
A) remains constant. B) decreases. C) increases. D) might increase or decrease depending on whether the demand for food is elastic or inelastic. E) might increase or decrease depending on whether the monopoly's marginal revenue curve lies below or above its demand curve.
A local bar provides free pretzels and peanuts. Once a week it even provides chicken wings for only ten cents each. It is
A) selling drinks below cost. B) selling pretzels, peanuts and wings below cost. C) unfairly competing against other local bars who are unable to do the same. D) almost certainly doing none of the above.