What is the most powerful argument against a fixed exchange rate?
A) The nation must administer the rates at all currency exchange venues, and it is expensive to do.
B) The nation usually gets opposition from other trading partners who are excluded.
C) The nation has to have a large store of gold on hand to exchange at fixed rates.
D) The nation gives up its ability to control its money supply and affect its own interest rates.
Ans: D) The nation gives up its ability to control its money supply and affect its own interest rates.
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If the real interest rate falls, people decide to ________ because the opportunity cost of ________
A) decrease their consumption expenditure; consumption has decreased B) increase their consumption expenditure; consumption has decreased C) increase their consumption expenditure; saving has decreased D) save more; saving has decreased E) None of the above answers is correct.
What is the relationship between government and coercion?
A) Government achieves its objectives exclusively through coercion. B) Government aims at minimizing the use of coercion in society. C) Government is generally granted the exclusive right to coerce adults. D) Only governments use coercion.
If both the demand and supply curves for computers shift to the right, the price of computers may rise, fall, or remain unchanged
a. True b. False
If a graph has a line that shows the amount of outsourcing in the last ten years, it is known as
A) a pie chart. B) a time-series graph. C) a demand curve for outsourcing. D) a supply curve of outsourcing.