Under the existing system of partially-flexible exchange rates, a country experiencing what it believes is a long-term balance of payments deficit might be expected to:
A. let its currency lose value.
B. buy its own currency in the foreign exchange market.
C. sell its own currency in the foreign exchange market.
D. let its currency gain value.
Answer: A
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The monopsonist's labor supply curve is the same as the
a. wage rate b. marginal revenue product curve c. marginal physical product curve d. market labor demand curve e. market labor supply curve
One undesirable effect of social regulation is that it
A) affects smaller firms disproportionately, creating anticompetitive effects. B) destroys incentives for firms to engage in marginal cost pricing. C) raises prices of goods to consumers, while lowering prices to business and special interest groups. D) reduces the effectiveness of economic regulation.
Among all assets, only money can be a
A) unit of account. B) store of value. C) medium of exchange. D) a way of amassing wealth.
The burden of a luxury tax falls
a. more on the rich than on the middle class. b. more on the poor than on the rich. c. more on the middle class than on the rich. d. equally on the rich, the middle class, and the poor.