Examlex

Solved

An Exchange Rate System Where Currency Values Are Determined by the Forces

question 56

Multiple Choice

An exchange rate system where currency values are determined by the forces of supply and demand and where currency values fluctuate in response to changes in supply and demand is called a(n)


Definitions:

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity of the good that sellers are willing to offer for sale, holding other factors constant.

Horizontal Axis

In a graph or chart, it is the x-axis, representing the independent variable.

Equilibrium Quantity

Equilibrium quantity is the quantity of goods or services that is supplied and demanded at the equilibrium price, where the quantity supplied equals the quantity demanded.

Cross Elasticity

A measure of the responsiveness of the demand for one good to a change in the price of another good.

Related Questions