The Figure Below Shows the Demand (D) and Supply (S)

question 71

Multiple Choice

The figure below shows the demand (D) and supply (S) curves of cocoa in the U.S.Figure 21.4

-The exchange rate that is established in the absence of foreign exchange market intervention by the government is known as a(n) :

• A)historical anachronism.
• B)fixed exchange rate.
• C)"dirty float" exchange rate.
• D)unmanaged exchange rate.
• E)free market equilibrium exchange rate.

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Definitions:

Unintended Consequences

Are outcomes that are not the ones foreseen or intended by a purposeful action, often revealing a discrepancy between the intended result and actual results.

Economic Change

The process through which a country's economy grows, evolves, or transforms due to various factors such as technology, policies, and market conditions.

Incentives

Motivations or rewards designed to encourage specific behaviors or actions, often used in economic, workplace, or educational contexts.

Economic Thinking

A systematic approach to analyzing financial decisions and phenomena, employing principles of economics to evaluate costs, benefits, and impacts.