Changes in the Value of Currencies

question 15

Multiple Choice

Changes in the value of currencies:

• A)occur only in floating currency systems.
• B)can occur in floating currency systems,in managed floating systems,and even in fixed systems.
• C)occur only in floating and managed floating currency systems.
• D)occur uniformly in all currency systems.

---

Definitions:

Monopolistically Competitive Industry

An industry characterized by many firms offering products that are similar but not perfect substitutes, allowing for some degree of market power.

Monopolistic Competition

A market structure in which many companies sell products that are similar but not identical, allowing for competition among firms.

Demand Curve

A chart that illustrates the correlation between a product's price and the amount consumers want to buy.

Economic Profits

The divergence between total financial gains and total outlays, considering both manifest and unapparent costs.