One Can Argue That the Average American Today Is "Richer

question 15

Multiple Choice

One can argue that the average American today is "richer" than the richest American 100 years ago,given that 100 years ago,

• A)people's nominal incomes were,on average,much lower than they are today.
• B)personal fortunes were not accurately measured.
• C)many of the goods and services that we now take for granted were not available.
• D)international trade had not yet begun to flourish.

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Definitions:

Flexible Exchange Rates

A system where the value of a currency is determined by the foreign exchange market, depending on the supply and demand for that currency.

International Monetary Reserves

Assets that central banks and monetary authorities hold in foreign currencies, including foreign banknotes, bank deposits, bonds, treasury bills, and other government securities, to back its liabilities.

Demand for Pounds

Refers to the desire or requirement for British pounds in the foreign exchange market, usually driven by trade, investment, or speculation needs.

Fixed Exchange Rates

A currency system where the value of a currency is pegged to another currency, a basket of currencies, or a valuable commodity like gold.