One of the advantages of floating exchange rates is that:
a. consumers always know how much imported goods cost.
b. businesses always know, in advance, what future exchange rates will be.
c. countries are free to pursue their own macroeconomic policies without maintaining exchange rates.
d. countries cannot act independently and must thus coordinate their macroeconomic policies.
e. the global interest rate tends to decline to the lowest possible level.
c
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The assumption that wages change more slowly than prices implies that the
A) aggregate demand curve has a positive slope. B) aggregate demand curve has a negative slope. C) Phillips Curve has a negative slope. D) Phillips Curve has a positive slope.
The two major trading partners of the United States are
a. Germany and Mexico b. Mexico and Canada c. Japan and Canada d. Canada and Brazil e. Brazil and Japan
In the first few decades of its existence, the AFL
A. was concerned with obtaining bargaining strength in the face of the economic power of the emerging large corporations. B. was primarily concerned with long range goals such as a universal eight-hour day rather than "bread and butter issues" such as higher wages. C. leadership was opposed to use of the strike as a method to achieving its goals. D. did all of these things.
The real interest rate is
A. the nominal interest rate plus the GDP deflator. B. the nominal interest rate minus the anticipated inflation rate. C. the nominal interest rate plus a COLA. D. the nominal interest rate plus the anticipated inflation rate.