Floating exchange rates are market determined, that is, supply and demand for foreign exchange sets the rate in the foreign exchange market.
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Q2: The sum of the balances in the
Q3: The appreciation of a currency encourages exports.
Q4: To purchase goods from France, you must
Q5: If the exchange rate, dollars per euro,
Q6: An increase in the rate of inflation
Q8: If the British government fixes the exchange
Q9: The International Monetary Fund is an organization
Q10: Low productivity in the U.S. appreciates the
Q11: Arbitrage works to create a general equilibrium
Q12: Arbitrage keeps markets from reaching equilibrium.
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