If there are no reserves, domestic adjustments to payment imbalances under fixed exchange rates require surplus countries to forsake full employment and deficit countries to forsake price stability.
Answer the following statement true (T) or false (F)
False
If there are no reserves, domestic adjustments to payment imbalances under fixed exchange rates require surplus countries to forsake price stability and deficit countries to forsake full employment.
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Economic activity moves from a trough into a period of ________ until it reaches a ________ and then into a period of ________.
A. recession; peak; expansion B. recession; trough; expansion C. expansion; trough; recession. D. expansion; peak; recession
Huey and Steve can grow potatoes or tomatoes. The table above shows the pounds of potatoes and tomatoes Huey and Steve can grow in a week. Based on the table, which of the following statements is correct?
A) Steve has a comparative advantage in both potatoes and tomatoes. B) Huey has an absolute advantage in potatoes only. C) Steve has an absolute advantage in both potatoes and tomatoes. D) Huey has an absolute advantage in both potatoes and tomatoes. E) Steve has an absolute advantage in potatoes only.
A bond's price is $80 and the bond pays $8 in interest every year. The bond's interest rate is ________
A) 80 percent B) 10 percent C) 4 percent D) 8 percent E) None of the above are correct.
Which of the following cause the aggregate demand curve to slope downward and to the right?
A. the demand-shock effect B. military expenditures of the government C. the prices of key goods D. the interest rate effect