A flexible exchange rate regime
A) does not describe the regime follow by the European Central Banks.
B) keeps the exchange rate fixed but lets the price of gold fluctuate
C) allows a currency to float
D) none of these choices.
C
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From the perspective of economic theory, prices are basically
A) constant. B) information signals C) rising. D) rates of exploitation.
Free Market System
What will be an ideal response?
Supply-side economists believe that a reduction in the tax rate
a. always decrease government tax revenue. b. shifts the aggregate supply curve to the right. c. provides no incentive for people to work more. d. would decrease consumption.
Which of the following will NOT lead to a change in the demand for labor?
A) a change in demand for the final good B) a change in the supply of labor C) a change in the price of a substitute input D) a change in labor productivity