International trade under a floating exchange rate system
a. has been trouble-free owing to the stabilizing role of speculators in the currency markets.
b. has suffered from so many problems that the volume of trade has declined significantly.
c. exposes businesses to unavoidable risks when exchange rates change.
d. has been subject to wild runs on currencies that were on the verge of devaluation.
c
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New growth theory predicts that
A) economic growth is only temporary. B) economic growth can last indefinitely. C) economic growth is eroded by changes in taxes. D) government policies can do nothing to foster increased growth.
Which of the following was true regarding subprime mortgages that were popular in 2005–2006?
A. More than 90 percent of these loans were made by regulated banks. B. Bankers expected higher default rates on these loans. C. They were generally fixed rate loans. D. All of these responses are correct.
Which of the following is not a determinant of a good's price elasticity of demand?
A) the slope of the demand curve B) whether the good is a luxury or a necessity C) the share of the good in the consumer's total budget D) the passage of time
Economist Timothy Smeeding reported that income inequality
A. seems to increase whenever it is studied scientifically. B. was higher in the U.S. than in any of the European countries studied. C. was lower in the U.S. than in any of the European countries studied. D. was roughly the same in both the U.S. and in the European countries studied.