The advantage of an effective exchange rate is

A) it gives us an accurate gauge for the strengthening or weakening of a currency.
B) it uses a weighted average of bilateral exchanges based on the country's trading partners.
C) unreliable because its using different weights to reflect trade flows.
D) A and B.


D

Economics

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Refer to the game between James and Theodore depicted in Figure 12.2. Which of the following is true?



A. If James chooses Up, Theodore's best response is to choose Left.

B. If James chooses Down, Theodore's best response is to choose Left.

C. If Theodore chooses Left, James's best response is to choose Down.

D. If Theodore chooses Right, James's best response is to choose Up.

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Adding together the market share of the largest firms in an industry results in the concentration ratio for a market.

Answer the following statement true (T) or false (F)

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Why might economic policies aimed at stabilization actually increase the magnitudes of economic fluctuations?

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