Exchange Rates

question 210

Multiple Choice

Exchange rates

• A)are always fixed
• B)fluctuate to equate the quantity of foreign exchange demanded with the quantity supplied
• C)fluctuate to equate imports and exports
• D)fluctuate to equate interest rates in various countries
• E)fluctuate according to agreements between the governments of various countries

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Definitions:

Minimum Wage

The lowest legal hourly rate that workers can be paid by their employers, set to ensure a minimum standard of living for workers.

Skill

The ability to perform tasks and solve problems due to knowledge, practice, aptitude, and experience.

Binding Minimum Wage

This is a minimum wage set above the equilibrium wage rate, leading to a surplus of labor supply and a shortage of jobs at that wage level.

Workers

Individuals who perform tasks or provide services in exchange for compensation.