If the $/€ Bid and Ask Prices Are $1

question 57

Multiple Choice

If the $/€ bid and ask prices are $1.50/€ and $1.51/€,respectively,the corresponding €/$ bid and ask prices are

• A)€0.6667 and €0.6623.
• B)$1.51 and $1.50.
• C)€0.6623 and €0.6667.
• D)cannot be determined with the information given.

---

Definitions:

Government Purchases

Expenditures made by the government for goods and services that directly satisfy public consumption or are used in the production of other goods and services.

Stagflation

An economic condition characterized by slow economic growth, high unemployment, and high inflation, occurring simultaneously.

Demand-Management Policies

Strategies used by the government to influence the amount of aggregate demand in the economy, often through fiscal and monetary policies.

Automatic Stabilizers

Economic policies and programs designed to offset fluctuations in a nation's economic activity without additional intervention by the government or policymakers, such as progressive taxes and unemployment benefits.