In a fixed exchange rate regime, the value of a currency is pegged to ________
A) an anchor currency
B) a currency board
C) a dirty float
D) an interest rate standard such as the Treasury bill rate in the U.S.
A
You might also like to view...
Which of the following would be most likely to induce Congress and the president to conduct expansionary fiscal policy? A significant
A) decrease in oil prices. B) increase in consumption spending. C) decrease in investment spending. D) increase in net exports.
A large country imposes capital controls that prohibit foreign borrowing and lending by domestic residents. The country is currently running a financial account deficit. The imposition of the capital controls will cause
A) net exports to increase. B) real domestic interest rates to rise. C) real world interest rates to fall. D) desired national saving to fall.
If a monopolist can price discriminate among buyers, it will charge buyers with more elastic demands a higher price.
Answer the following statement true (T) or false (F)
What does the deadweight loss of monopoly measure?
What will be an ideal response?