An advantage of fixed exchange rates for a country that suffers from bouts of high inflation is:
A. it makes imports less expensive.
B. it unties policymakers' hands so they can alter the reserves of the banking system as needed.
C. policymakers will have increased control over domestic interest rates.
D. it establishes a credible low inflation policy.
Answer: D
You might also like to view...
Refer to the figure above. This country has comparative advantage in good
A) S. B) T. C) Y. D) Z.
Which of the following statements best explains how the use of money in an economy increases economic efficiency?
A) Money increases economic efficiency because it is costless to produce. B) Money increases economic efficiency because it discourages specialization. C) Money increases economic efficiency because it decreases transactions costs. D) Money cannot have an effect on economic efficiency.
The Boy Scouts have so far sold 100 tickets for their upcoming raffle, but they sell a constant additional 12 tickets every day. After three more days of selling tickets, the stock of tickets sold will be ________, and the flow of tickets sold will be ________.
A. 100; 36 B. 136; 36 C. 36; 12 D. 136; 12
At any point on an indifference curve, the slope indicates:
A. the way the consumer's budget is allocated between the two goods. B. the market rate of substitution between the two goods. C. how the total satisfaction of the consumer changes with different market baskets. D. None of the statements is correct.