Large economies, such as the U.S. economy, should ________ adopt a flexible exchange rate, because giving up the power to stabilize the domestic economy via monetary policy ________.
A. almost never; is of little consequence
B. nearly always; is of little consequence
C. nearly always; comes with a high cost
D. almost never; comes with a high cost
Answer: C
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The official mission of the World Bank is to
A) establish exchange rates between the currencies of member nations. B) provide funding for needed development projects that would have difficulty attracting private investment. C) advise member nations on the appropriate levels of taxation. D) fight global inflation.
A direct exchange of fish for corn is an example of:
a. storing value. b. a modern exchange method. c. barter. d. a non-coincidence of wants.
Impact investing involves investing money in:
A. entire industries to have an overall impact. B. those economies with the largest finance gap. C. firms to generate both financial and social returns. D. None of these statements is true.
Jason and Julie are gardeners. Jason grows corn and Julie grows tomatoes. Every week they trade: Jason gives Julie a bushel of corn in exchange for half a bushel of tomatoes. Is Jason's bushel of corn counted as part of GDP? How would your answer change if Julie bought Jason's corn for $10 at the local farmers' market?