When a country occasionally buys or sells currencies to influence the exchange rate, but usually lets market forces determine the exchange rate, it has a:
A. fixed exchange rate.
B. partially-flexible exchange rate.
C. flexible exchange rate.
D. gold standard.
Answer: B
You might also like to view...
What is cost-plus pricing? Why do some firms use cost-plus pricing even when the firms' managers have the resources to devise a pricing strategy that would result in greater profits?
What will be an ideal response?
A negative externality is a situation in which
A) there is a spillover of benefits. B) a cost associated with an economic activity is borne by a third party. C) a firm is paying in excess of the total costs of producing a good. D) none of the above.
Suppose that domestic personal computer firms complain to Congress that cheap exports are driving them out of business. Congress, worried about job losses, decides to restrict trade, and is considering either a tariff or a quota on imported personal
computers. a . Explain which Congress will choose if it wants to restrict trade, yet please importers. b. Explain which Congress will choose if it wants to use the restriction as a source of revenue. c. How do tariffs and quotas differ?
If it's possible to eliminate the problems created by externalities, why do they persist?
A. Creating a more efficient solution does not mean it will have a fair distribution of that surplus. B. It can be difficult to coordinate the millions of market participants. C. They can be diffuse, complex, and hard to control. D. All of these statements are true.