At the Equilibrium Exchange Rate

question 57

Multiple Choice

At the equilibrium exchange rate,

• A)a surplus may exist but a shortage may not exist.
• B)the quantity of dollars demanded equals the quantity of dollars supplied.
• C)the demand for dollars equals the supply of dollars.
• D)a shortage may exist but a surplus may not exist.
• E)the Canadian dollar is trading for 100 U.S.cents per Canadian dollar.

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Definitions:

Interior

The internal part or inside space of something, such as a building or vehicle.

Consumer Price Index

An index measuring the change in the price level of a basket of consumer goods and services purchased by households.

Year 3 Dollars

Year 3 dollars refer to the value of money adjusted for price changes (inflation or deflation) to a specific year's average price level, often used for comparison over different times.

Food Expenditures

The amount of money spent by households or individuals on purchasing food for consumption.