The Exchange Rate Is Volatile Because

question 99

Multiple Choice

The exchange rate is volatile because

• A)government policy promotes interest rate fluctuation.
• B)the demand curve for foreign exchange is very flat.
• C)the demand curve for foreign exchange is very steep.
• D)the supply curve of dollars is vertical.
• E)the supply of dollars and demand for dollars are influenced by similar events.

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Definitions:

Creativity

The ability to generate innovative ideas and solve problems in novel ways.

Autocratic

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