If a country wants to keep its exchange rate fixed, it must
A) allow its currency value to vary with market supply and demand in foreign exchange markets.
B) be a member of the IMF.
C) vary the amount of its national currency supplied at any given exchange rate in foreign exchange markets when necessary.
D) eliminate its foreign exchange reserves.
Answer: C
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Scott and Tom have dinner together at a new restaurant, and they discover that the portions are huge but taking home leftovers is not allowed. When both decide they are full, Scott forces himself to finish the rest of the food on his plate even though he doesn't really want to, while Tom asks the waiter to remove his plate while it still contains some food. How would an economist describe this behavior?
A. Scott acted rationally, because the food otherwise would have been thrown away. B. Tom acted rationally, maximizing his utility. C. Both Tom and Scott acted rationally. D. Both Tom and Scott acted irrationally.
One reason college students do not study enough to get high grades is that they are unrealistic about their future behavior
Indicate whether the statement is true or false
Suppose that John Maestro, the owner of a tennis shop in Evanston, Illinois, decides to purchase a new machine that restrings tennis rackets in half the time it formerly took. The new technology costs $1,000 . and the MPC is 0.80 . How much real GDP will be generated from John's $1,000 initial investment?
a. $200 b. $500 c. $1,000 d. $2,000 e. $5,000
Velocity is determined by:
A. the size of the government budget deficit. B. the Federal Reserve. C. payments methods and technology. D. average labor productivity times the population growth rate.