Proponents of fixed exchange rates argue that the predictability of the fixed exchange rate:
A. decreases trade and economic integration.
B. prevents exchange rate overvaluation.
C. increases trade and economic integration.
D. allows monetary policy to be used to stabilize the domestic economy.
Answer: C
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In the modern Keynesian model, over much of its range the short-run aggregate supply (SRAS) curve is
A) horizontal. B) vertical. C) upward sloping. D) downward sloping.
A monopolist seller of Irish ceramics faces the following demand function for its product: P = 62 - 3Q. The fixed cost is $10 and the variable cost per unit is $2 . What is the maximizing QUANTITY for this monopoly?
a. Q = 10 b. Q = 15 c. Q = 22 d. Q = 37 e. Q = 41
Dutch Disease is associated with a dramatic decline in the demand for a primary commodity produced by a country
a. True b. False Indicate whether the statement is true or false
An individual bank can lend out at most its
a. actual reserves b. fractional reserves c. legal reserves d. demand deposits e. excess reserves