An important advantage of a fixed-exchange-rate system is that it
A. promotes the growth of international trade and international financial transactions, by reducing the risk to market participants that exchange rates will change unexpectedly and substantially.
B. prevents an exchange rate from becoming overvalued.
C. protects the domestic economy from being hit by foreign shocks.
D. prevents an exchange rate from becoming undervalued.
Answer: A
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Increased government spending is an example of:
A. expansionary fiscal policy. B. contractionary fiscal policy. C. expansionary monetary policy. D. contractionary monetary policy.
If you lived in Jamaica, you would know that Jamaican GDP less capital depreciation in Jamaica equals
a. Jamaican GNP b. Jamaican national income c. Jamaican NDP d. Jamaican NNP e. Jamaican net investment
_____ goods are rivalrous in consumption and excludable
Fill in the blank(s) with the appropriate word(s).
If the economy were producing at point D and moved to point C the opportunity cost in terms of lost production of outboard motors would be
A. 2 units of outboard motors.
B. 4 units of outboard motors.
C. 12 units of outboard motors.
D. 11 units of robots.