The purpose of creating the European exchange rate mechanism (ERM) was to
A) base trade and investment on comparative advantage.
B) prevent currencies from appreciating.
C) create barriers to trade.
D) let exchange rates float more freely.
A
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Assuming an interior solution, a production plan is profit maximizing if and only if all marginal revenue products are equal to input prices.
Answer the following statement true (T) or false (F)
The Ricardian two-country two-good model predicts that there are potential benefits from trade, but NOT
A) the effect of trade on income distribution. B) the mechanism that determines which country will specialize in which good. C) when one country has an absolute advantage in the production of both goods. D) when one country has significantly lower wages than the other country. E) when both countries have the same types of technology available.
According to estimates of the Taylor rule, monetary policy was too tight
A) from 1960 to 1965. B) from 1965 to 1979. C) in the 1980s. D) in the 1990s.
The sun is an example of:
a. a natural resource. b. capital. c. labor. d. none of these.