When a government influences the exchange rate of its currency, it is said to be practicing “dirty floating.”
Answer the following statement true (T) or false (F)
True
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How did the role of government in the East Asian miracle become a factor in the currency crisis of the late 1990s?
What will be an ideal response?
A normative economic statement is:
a. a statement of fact. b. a statement of opinion which advocates a particular position. c. not acceptable in the economics profession. d. the only acceptable manner to present economic information. e. a statement based upon government-supplied information.
A problem that the Fed faces when it attempts to control the money supply is that
a. the 100-percent-reserve banking system in the U.S. makes it difficult for the Fed to carry out its monetary policy. b. the Fed has to get the approval of the U.S. Treasury Department whenever it uses any of its monetary policy tools. c. the Fed does not have a tool that it can use to change the money supply by either a small amount or a large amount. d. the Fed does not control the amount of money that households choose to hold as deposits in banks.
The United States' balance of payments is likely to improve when
A. there is an increase in political instability in other countries. B. American people want to invest more in foreign countries. C. the American government increases its spending on foreign aid. D. the inflation rate in the United States rises relative to other countries.