Which of the following is true of a country with a managed exchange rate system?
A) The central bank of the country always pursues contractionary monetary policy.
B) The current account balance of the country is always positive.
C) The current account balance of the country is always negative.
D) The central bank of the country actively intervenes to influence the exchange rate.
D
You might also like to view...
Use the following graph showing the average total cost curve for a perfectly competitive firm to answer the next question.At the long-run equilibrium level of output, this firm's total revenue
A. is $400. B. is $10. C. is $40. D. cannot be determined from the information provided.
Describe the relationship between marginal productivity and average productivity. Use calculus or a graph to support your answer
What will be an ideal response?
If you go to the bank and notice that a dollar buys more Mexican pesos than it used to, then the dollar has
a. appreciated. Other things the same, the appreciation would make you less likely to travel to Mexico. b. appreciated. Other things the same, the appreciation would make you more likely to travel to Mexico. c. depreciated. Other things the same, the depreciation would make you less likely to travel to Mexico. d. depreciated. Other things the same, the depreciation would make you more likely to travel to Mexico.
When price is below average variable cost, a firm in a competitive market will
a. shut down and incur fixed costs. b. shut down and incur both variable and fixed costs. c. continue to operate as long as average revenue exceeds marginal cost. d. continue to operate as long as average revenue exceeds average fixed cost.