Table 15.1. The Market for Francs

question 161

Multiple Choice

Table 15.1.
The Market for Francs

-Refer to Table 15.1.If monetary authorities fix the exchange rate at $0.30 per franc,there will be a:

• A) Shortage of 200 francs
• B) Shortage of 400 francs
• C) Surplus of 200 francs
• D) Surplus of 400 francs

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Definitions:

National Industrial Recovery Act

A 1933 U.S. law aimed at boosting economic recovery during the Great Depression by regulating industry standards and promoting fair wages and hours for workers.

Industrial Output

The total volume of products and services produced by the manufacturing sector of an economy.

Legislation

Laws or statutes enacted by a legislative body to regulate, authorize, sanction, grant, declare, or restrict various activities.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months.