With a(n) ________, the government allows the market to determine the exchange rate of a currency.

A. dirty float
B. crawling peg
C. adjustable peg
D. clean float


Answer: D

Economics

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The value of a country's exports during a particular year was $120,000 and the value of its imports was $85,000. Which of the following is true?

A) The country ran a fiscal deficit of $205,000 during that year. B) The country ran a trade surplus of $35,000 during that year. C) The country ran a budget surplus of $205,000 during that year. D) The country ran a trade deficit of $35,000 during that year.

Economics

Timmy and Tommy are considering contributing to a project. If both contribute, each receives a payoff of 20. If neither contribute, each receives a payoff of 10

If only one person contributes, the person who contributes receives a payoff of 14 and the person who does not contribute receives a payoff of 18. Will the public goods problem prevent this project from being completed? Explain why or why not.

Economics

A supermarket sells you a pound of coffee on condition that you buy a gallon of milk. This is an example of

a. Bundling b. Package Tie in Sale c. Price Discounts d. Both a and b

Economics

In the market for potatoes, where price level reaches its low in October and its peak in June, speculators help to:

a. keep the equilibrium price uniform over the year. b. lower the level of consumption in June. c. lower the level of consumption in October. d. keep the equilibrium price level low over the year.

Economics