When an exchange rate is established as a fixed peg, active intervention may be required to maintain the target-pegged rate

a. True
b. False
Indicate whether the statement is true or false


True

Economics

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Which of the following cannot be controlled precisely by the Federal Reserve?

A) Government securities held by the New York Federal Reserve B) The discount rate C) Reserve requirement ratios D) Total bank reserves

Economics

Fiscal restraint is defined as

A. Tax cuts or spending hikes intended to reduce aggregate demand. B. Tax cuts or spending hikes intended to increase aggregate demand. C. Tax hikes or spending cuts intended to reduce aggregate demand. D. Tax hikes or spending cuts intended to increase aggregate demand.

Economics

Recall the Application about running a software programming business to answer the following question(s).The current income you would sacrifice to start your own software development business is part of the:

A. opportunity cost of invested funds. B. opportunity cost of starting a business. C. cost of doing business. D. present value of your initial investment.

Economics

Related to the Economics in Practice on page 102: Which of the following best explains why demand is often more elastic in the long run than it is in the short run?

A. Consumers tend to postpone making purchasing decisions as long as possible. B. In the short run, prices can change rapidly, but in the long run they are more stable. C. When demand is elastic, price increases reduce revenue because a small price increase will lead to a large decrease in quantity demanded. D. In the long run, consumers have greater access to substitutes.

Economics