An important effect of foreign currency speculators is that
A. they have consistently lost money and have left the market.
B. they have pushed exchange rates to wider extremes than most economists predicted.
C. they actually limit the volatility of exchange rate movements.
D. they have had no effect at all on exchange rate volatility.
Answer: C
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Refer to Table 2-4. Assume Dina's Diner only produces sliders and hot wings. A combination of 40 sliders and 50 hot wings would appear
A) along Dina's production possibilities frontier. B) inside Dina's production possibilities frontier. C) outside Dina's production possibilities frontier. D) at the vertical intercept of Dina's production possibilities frontier.
In comparison to a government that runs a balanced budget, when the government runs a budget deficit
A) business investment will fall. B) the equilibrium interest rate will fall. C) household savings will fall. D) none of the above
The rate of capacity utilization is a principal determinant of autonomous investment
Indicate whether the statement is true or false
To say monetary policy is transparent implies:
A. policymakers offer plausible explanations for their decisions along with supporting data. B. that anyone could figure out what the correct policy should be. C. that when faced with the same problem, policymakers will always react the same way. D. monetary policy should not be so difficult that most people couldn't understand it.