If a Country's Currency Is Determined Only by the Demand

question 39

Multiple Choice

If a country's currency is determined only by the demand and supply for that country's currency,the country is said to have a

• A)floating exchange rate.
• B)fixed exchange rate.
• C)gold standard.
• D)managed float.

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Definitions:

Consumption Bundle

A combination of various goods and services that an individual consumes at a given time.

Slope

In mathematics, the rate at which a line rises or falls relative to a horizontal distance.

Indifference Curves

Graphs showing different bundles of goods between which a consumer is indifferent, reflecting the consumer's preferences and trade-offs.

Bundle

A combination of goods or services that are sold together as a single package.