Under a "crawling peg" system, a country's exchange rate
A) is fixed except for small, surprise changes.
B) changes at a predetermined rate against the dollar or some other major currency.
C) can fluctuate within a narrow band.
D) can change, but the changes are kept secret from the public.
E) is determined by the central bank of another country.
B
You might also like to view...
The FUN Bank has no excess reserves when a new deposit of $20,000 is made. The desired reserve ratio is 5 percent. After the deposit, but before making any loans, how much does The FUN Bank have in excess reserves?
A) $19,000 B) $20,000 C) $1,000 D) $9,000 E) $21,000
Figure 32-2
?
Suppose that Figure 32-2 shows the effects of reducing the budget deficit by raising taxes. If authorities do not want real GDP to fall, monetary policy must
A. become sufficiently more expansionary to restore the aggregate demand curve to D0D0. B. contract aggregate demand to be consistent with deficit-reducing fiscal policy. C. not lower interest rates and thwart the goal of a balanced budget. D. become more contractionary to lower the interest rate and spur investment.
John Nash, the mathematician responsible for the Nash equilibrium, also proved that any reasonable bargaining outcome would
a. Split the gains from trade b. Allocate the gains from trade to the seller c. Allocate the gains from trade to the buyer d. All of the above
The labor supply curve may have a backward-bending portion if, at higher wages, the income effect is
a. smaller than the substitution effect. b. larger than the substitution effect. c. negative. d. Any of the above could result in a backward-bending supply curve.