One reason a country might choose a flexible exchange rate
A) to reduce inflation and promote a stable economic environment.
B) to reduce the impact of economic shocks.
C) to rid themselves of the pressure of monetary management.
D) that it is easier for all citizens to understand.
Answer: B) to reduce the impact of economic shocks.
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Describe how actual reserves are calculated. Explain the difference between required reserves and excess reserves. How do reserves affect the amount of loans a bank can make?
What will be an ideal response?
The demand curve for a monopoly firm
A) lies below its marginal revenue curve. B) is perfectly inelastic. C) is the same as the market demand curve. D) is horizontal.
A decrease in government expenditures serves as an example of an adverse supply shock
a. True b. False Indicate whether the statement is true or false
It is not optimal to have equal incomes.
Answer the following statement true (T) or false (F)