Which exchange rate system requires an immediate response by a government to counter all market forces on exchange rates?
A. The floating exchange rate system
B. The fixed exchange rate system
C. The managed float exchange rate system
D. The Bretton-Woods exchange rate system
Answer: B
You might also like to view...
One year nominal GDP was $286 billion and the price index was 88. Real GDP that year was ________.
A. $308 billion B. $252 billion C. $325 billion D. $262 billion
The open economy effect and interest rate effect are two of the reasons why
A) higher price levels increase long-run aggregate supply. B) growth of the labor force does not contribute to economic growth in wealthy countries. C) capital formation does not contribute to economic growth in poor countries. D) the aggregate demand curve slopes downward.
The Dodd-Frank Act removed which group from decisions regarding the presidents of Federal Reserve Banks?
A) Class A directors B) Class B directors C) Class C directors D) Board of Governors
An appreciation of the dollar makes imported inputs cheaper and shifts the U.S. aggregate supply curve outward, thus pushing American prices down.
Answer the following statement true (T) or false (F)