A speculative attack:
A. can occur with any currency.
B. can occur to currencies with floating exchange rates.
C. can occur to currencies with fixed exchange rates.
D. are illegal and no longer occur.
C. can occur to currencies with fixed exchange rates.
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Each of the following factors might interfere with the efficiency of perfect competition except:
a. increasing returns to scale. b. imperfect price information. c. externalities. d. diminishing returns to scale.
If Monica has a comparative advantage in baking and George has a comparative advantage in sewing, then
a. Monica must have an absolute advantage in baking b. Monica must have an absolute advantage in sewing c. George must have an absolute advantage in baking d. George must have an absolute advantage in sewing e. we can conclude nothing about absolute advantage
By comparing the world price of pecans to India's domestic price of pecans, we can determine whether India
a. will export pecans (assuming trade is allowed). b. will import pecans (assuming trade is allowed). c. has a comparative advantage in producing pecans. d. All of the above are correct.
If the reserve ratio increased from 5 percent to 10 percent, then the money multiplier would a. rise from 5 to 10
b. rise from 10 to 20. c. fall from 20 to 10. d. fall from 10 to 5.