Author Question: Which of the following statements is true of a flexible exchange rate system? A) Market forces ... (Read 17 times)

drink

  • Hero Member
  • *****
  • Posts: 554
Which of the following statements is true of a flexible exchange rate system?
 
  A) Market forces tend to undervalue a currency over time.
  B) Market forces tend to overvalue a currency over time.
  C) Market forces do not affect exchange rates between different currencies.
  D) Market forces tend to push the exchange rate of a currency to market clearing levels over time.

Question 2

If supply of a product increases and demand for the product decreases, equilibrium quantity will definitely change.
 
  Indicate whether the statement is true or false


welcom1000

  • Sr. Member
  • ****
  • Posts: 298
Answer to Question 1

D

Answer to Question 2

FALSE



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

According to the FDA, adverse drug events harmed or killed approximately 1,200,000 people in the United States in the year 2015.

Did you know?

Hippocrates noted that blood separates into four differently colored liquids when removed from the body and examined: a pure red liquid mixed with white liquid material with a yellow-colored froth at the top and a black substance that settles underneath; he named these the four humors (for blood, phlegm, yellow bile, and black bile).

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

For a complete list of videos, visit our video library