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

question 19

Multiple Choice

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

-Assume that a country's government influences the exchange rate through active central bank intervention, with no pre-announced path for the exchange rate. This policy is known as a(n) :

• A)floating exchange-rate policy.
• B)managed floating exchange-rate policy.
• C)fixed exchange-rate policy.
• D)crawling-peg exchange-rate policy.
• E)interventionist exchange-rate policy.

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Definitions:

Concentrated Industries

Industries in which a small number of companies hold a large market share, resulting in reduced competition.

R&D

Research and Development: Activities in connection with corporate or governmental innovation.

Marginal Cost

The spending necessary to fabricate one more unit of a good or service.

Herfindahl-Hirschman Index

An index measuring the level of concentration in a market, calculated by summing the squares of the market shares of all competitors.