The advantage of a system of fixed exchange rates over one where exchange rates are flexible is that
A. the government gains more control over the economy.
B. floating exchange rates impose risks on importers and exporters from unpredictable exchange rates.
C. exchange controls become unnecessary.
D. fiscal and monetary policy can focus more on domestic conditions.
Answer: B
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Provide a utilitarian justification for using the tax system to provide a more equal distribution of income as well as two possible counterarguments to this viewpoint
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Which of the following is true concerning the growth record of less developed countries (LDCs) during the last several decades?
a. The per capita GDP of several poverty stricken African countries was lower in 2009 than in 1980. b. None of the LDCs have been able to match the per capita income growth rate of the United States. c. During the last two decades, the fastest growing countries in the world (those with annual real growth rates of 3.5 percent or more) have been LDCs. d. Both a and c are correct. e. All of the above are correct.
Suppose Jan started up a small lemonade stand business last month. Variable costs for Jan's lemonade stand now include the cost of
a. building the lemonade stand. b. hiring an artist to design a logo for her sign. c. lemons and sugar. d. All of the above are correct.
An increase in the real interest rate on U.S. bonds, everything else equal, will have the following impact on the foreign exchange market:
A. the supply of dollars will increase. B. the demand for dollars will decrease. C. the dollar will depreciate relative to foreign currencies. D. the demand for dollars will increase.