Under a Flexible Exchange Rate System, Which One of the Following

question 47

Multiple Choice

Under a flexible exchange rate system, which one of the following would not directly affect the exchange rate?

• A)a change in income
• B)the relative inflation rates in two countries
• C)the salary of the president of the United States
• D)a change in capital flows
• E)a change in the level of exports or imports

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Definitions:

Thoracic Cavity

The chamber of the human body located between the neck and the abdomen, encased by the ribs, sternum, and vertebral column; it contains the lungs and heart.

Serous Membrane

A thin layer of tissue that lines certain internal cavities of the body, producing a lubricating fluid to reduce friction from muscle movement.

Hypothalamus

The hypothalamus is a small but crucial part of the brain that regulates many bodily functions, including temperature, hunger, and hormone release.

Skeletal Muscle

A type of muscle that is attached to bones and is involved in facilitating movement through contraction.