"Fixed exchange rates are not even an option for most countries." Discuss

What will be an ideal response?


Durable fixed exchange rate arrangements may not even be possible unless countries are willing to maintain strict controls over capital movements (as China does), or, at the other extreme, move to a shared single currency with their monetary partners (as in Europe). Even a country following prudent monetary and fiscal policies is not safe from speculative attacks on its fixed exchange rate.

Economics

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Indicate whether the statement is true or false

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The economic functions of the government deal with

A) discouraging smoking in youths. B) making sure supply equal demand. C) promoting economic efficiency. D) excess demand.

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The horizontal intercept of the intertemporal budget constraint is referred to as

A. the future value of present income. B. the future value of lifetime income. C. the present value of lifetime income. D. the current value of future income.

Economics

When a good is not easily excludable, what people pay for it will:

A. exactly equal the social benefit of the good. B. not necessarily reflect the real value they place on it. C. be greater than the social benefit of the good. D. reflect the real value they place on it.

Economics