The buying and selling of foreign currency by the central bank is a trade policy whose objective is:
A. reducing purchases of assets abroad.
B. stabilizing the exchange rate against external shocks.
C. stabilizing the interest rate against foreign capital outflows.
D. promoting long term economic growth.
Answer: B
You might also like to view...
The Herfindahl-Hirschman Index measures an industry's concentration of
A) employment. B) sales. C) profits. D) productive capital.
Most economists believe that there are positive externalities associated with education. If they're right, the market for education fails to provide an efficient or socially optimal allocation of resources because the equilibrium
a. price and quantity would be too high b. price would be too low and quantity would be too high c. price and quantity would be too low d. price would be too high and quantity would be too low e. price and quantity would be just right
In which of the following situations would supply be the most elastic?
a. An auto parts manufacturer is operating at capacity. b. A real estate developer in Boston is looking to build condos on the waterfront. c. A furniture manufacturer is operating its factory 8 hours per day. d. A hotel has all of its rooms booked for each night of the next 3 months.
When the prisoners' dilemma game is generalized to describe situations other than those that literally involve two prisoners, we see that cooperation between the players of the game
a. can be difficult to maintain, but only when cooperation would make at least one of the players of the game worse off. b. can be difficult to maintain, even when cooperation would make both players of the game better off. c. always works to the benefit of society as a whole. d. always works to the detriment of society as a whole.