Author Question: The exchange rate is volatile because A) the demand curve and the supply curve are horizontal. ... (Read 70 times)

Engineer · **on:** Jun 29, 2018

The exchange rate is volatile because

A) the demand curve and the supply curve are horizontal.
B) when a relevant factor changes, demand and supply tend to change in opposite directions.
C) the demand curve is vertical.
D) the supply curve is vertical.
E) when a relevant factor changes, demand and supply tend to change in the same direction.

Question 2

Holding everything else constant, the U.S. real exchange rate with Thailand will increase if the dollar depreciates.

Indicate whether the statement is true or false