If a country sets a pegged exchange rate that is above the equilibrium exchange rate, how can the country maintain the peg?
A) by purchasing surplus domestic currency at the pegged rate
B) by purchasing surplus domestic currency at the equilibrium exchange rate
C) by selling surplus domestic currency at the pegged rate
D) by increasing the pegged exchange rate
A
You might also like to view...
When demand is elastic, the marginal revenue resulting from a decrease in price is:
A) positive. B) zero. C) negative. D) cannot be determined without more information.
In the Friedman-Lucas money surprise model
A) If actual inflation is higher than anticipated inflation, then output must be above its trend value. B) If actual inflation is higher than anticipated inflation, then output must be below its trend value. C) money is neutral. D) monetary policy does not work.
A firm charging different customers different prices for the same product is engaged in:
a. Price discrimination b. Price matching c. Markup pricing d. Predatory pricing.
Research by economists Bloom, Draca, and Van Reenen revealed that imports from China were associated with not only lower consumer goods prices, but also a ______________ cost of inputs for domestic firms, a(n) ______________ in the variety of products those domestic firms sold, and a(n) _______________ in U.S. productivity
A) lower; increase; increase B) higher; decrease; increase C) lower; increase; decrease D) higher; increase; decrease E) ?lower; decrease; decrease