Under a Flexible Exchange Rate System, Which One of the Following

question 47

Multiple Choice

Under a flexible exchange rate system, which one of the following would not directly affect the exchange rate?

• A)a change in income
• B)the relative inflation rates in two countries
• C)the salary of the president of the United States
• D)a change in capital flows
• E)a change in the level of exports or imports

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Definitions:

Eras

Long and distinct periods of history with characteristic features, events, or developments.

Canada

A country located in the northern part of North America, characterized by its vast geography, multicultural population, and bilingual status of English and French.

Cultural Isolation

The condition of a group or individual being separated from and not participating in the broader practices, customs, and values of the surrounding society.

Multiculturalism

The policy or practice of giving equal attention and respect to cultural differences within a society.