Exchange rates that are determined by the unregulated forces of supply and demand are ?
Correct answer: A. floating exchange rates
- A. floating exchange rates
- B. pegged exchange rates
- C. managed exchange rates
- D. fixed exchange rates
Explanation
A floating exchange rate is determined primarily by market forces of supply and demand, without a fixed official value. Pegged and fixed rates require authorities to maintain a specified value.
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The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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