What is a currency system in which each country tries to keep the value of its currency constant against one another called?
What will be an ideal response?
Answer: a fixed exchange-rate system
You might also like to view...
Suppose that the demand for medical services can be characterized by the equation P = 100 - Q. Suppose further that the supply of health services can be characterized by the equation P = Q + 50.
(a) What is the equilibrium quantity and price in the market for health services? (b) In an effort to make health services more affordable, the government restricts the price of health services to be no greater than $65. What will happen to the quantity of health services in the market?
In the short run, fiscal policy has its primary affect on aggregate demand but in the long run fiscal policy can influence saving, investment and economic growth
a. True b. False Indicate whether the statement is true or false
The Fab Five, a cartel of five firms, sells a homogenous product. The Oct-Pool cartel is composed of eight firms that can differentiate their products. In the given scenario, which of the following statements is true?
a. The firms of both cartels are likely to cheat on their cartel agreements. b. The firms of both cartels are unlikely to cheat on their cartel agreements. c. The Fab Five cartel firms are likely to cheat on their cartel agreement, while the Oct-Pool cartel firms are unlikely to cheat on their cartel agreement. d. The Oct-Pool cartel firms are likely to cheat on their cartel agreement, while the Fab Five cartel firms are unlikely to cheat on their cartel agreement.
Your spouse complains that her 6% raise this year will not keep up with the increase in prices. In other words, she is unable to buy the same basket of goods with her 6% raise. Therefore, she believes that her
a. nominal income and real income increased. b. nominal income increased, but their real income decreased. c. nominal income and real income decreased. d. nominal income decreased, but their real income increased.