The recent flexible exchange rate system developed because of:
a. the controversies generated by trade surplus nations wanting to devalue their currencies
b. the huge debts owed to the IMF by less-developed countries.
c. governments were unable to agree on an alternative to a fixed-rate approach when the Bretton Woods system collapsed.
d. the controversies generated by trade deficit nations wanting to raise the value of their currencies.
c
You might also like to view...
If the government imposes an effective ________, a deadweight loss ________
A) price floor; does not occur B) price ceiling; does not occur C) price ceiling; occurs D) price support; does not occur E) Both answers C and D are correct.
? In Figure 5-13, the slope of the budget line (dropping all minus signs) equals
A. price of good X/price of good Y. B. price of good Y/price of good X. C. the minimum number of units of good Y the consumer would have to receive to make him willing to give up one unit of good X. D. the minimum number of units of good X the consumer would have to receive to make him willing to give up one unit of good Y.
Exhibit 11-4 Supply and demand curves for food servers
In Exhibit 11-4, suppose that in the interest of boosting incomes of the working poor, Congress imposes a minimum wage of $6.00 per hour. This minimum wage rate creates a(n):
A. new labor market equilibrium. B. excess demand for labor of 10 thousand food servers. C. excess supply of labor of food servers. D. situation of full employment for food servers.
A citizen in a developing country with a currency policy of convertibility on the current account could engage in all of the following transactions except:
A. sell foreign currency resulting from the exports of manufactured t-shirts. B. sell foreign currency resulting from the sale of a U.S. treasury bond. C. purchase foreign currency in order to import a BMW. D. purchase foreign currency in order to purchase a U.S. treasury bond.