Economist Charles Kindleberger (a proponent of fixed exchange rates mentioned in the text) would agree with which of the following statements?
A) It is better to leave the international value of the domestic currency to the free market forces than to have to sacrifice domestic economic goals in order to support a certain predetermined value of the currency.
B) There is too great a chance that the supported exchange rates will diverge significantly from the equilibrium exchange rates, which would create persistent problems and lead to an overall decrease in international trade.
C) With no certainty of what one nation's currency will be worth in terms of other nations' currencies, international trade is held below what it could be.
D) a and b
C
You might also like to view...
Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Which of the following is not part of the "state health insurance marketplaces" provision of the Patient Protection and Affordable Care Act (ACA)?
A) Each state is required to establish an Affordable Insurance Exchange. B) Low-income individuals are eligible for tax credits to offset the costs of buying health insurance. C) Small businesses with fewer than 50 employees are exempt from being required to participate in the program. D) None of the above are a part of the "state health insurance marketplaces" provision.
How does the Washington Consensus differ from the Santiago Consensus?
What will be an ideal response?
Among marketable government securities, the largest dollar volume is in the form of
A) Treasury bonds. B) Treasury notes. C) Treasury bills. D) federal funds.