Why might a nation seek to maintain a pegged exchange rate?
A) It makes business planning easier for firms involved in the global economy.
B) It removes the need to intervene in the foreign exchange market.
C) It ensures that the exchange rate will remain at its equilibrium.
D) It makes their currency more attractive on the foreign exchange market.
A
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A general equilibrium analysis of a price change in the corn chip market would include an investigation of the impacts in
A) the television market. B) the coffee market. C) the salsa market. D) All of the above.
The Big Mac index uses prices of a common item to predict long-run changes in exchange rates
a. True b. False Indicate whether the statement is true or false
Which one of the following statements is true?
A. Money flows from households to firms for resources. B. Money flows from households to foreign economies for exports. C. Money flows from government to firms for resources. D. Money flows from firms to households for resources.
An economic system in which relative prices change to reflect changes in supply and demand for different goods and services is known as a
A. socialist system. B. market. C. communist system. D. ration.