An exchange-rate system in which the nominal exchange rate is set by the government is known as
A) a flexible exchange-rate system.
B) a floating exchange-rate system.
C) a fixed exchange-rate system.
D) an exchange-rate union.
C
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Your textbook argues that the phrase "the distribution of income" is misleading because
A) income is not created in a market economy, only wealth is. B) it suggests that income is not earned in process of its creation and can simply be parceled out any which way policymakers wish. C) income in the form of wages and salaries can be negative, and therefore cannot be distributed. D) it is only related to ethical rather than economic considerations.
When a person does not have to pay the full costs for using a scarce resource, then
A) the use of the resource is not affected since society pays for the resource. B) more of the resource will be used. C) the internal costs of using the resource are too high. D) the social costs of the resource are less than they would be if the "correct" amount of the resource were being used.
The short-run effects on the interest rate are
a. shown equally well using either liquidity preference theory or classical theory. b. best shown using classical theory. c. best shown using liquidity preference theory. d. not shown well by either liquidity preference theory or classical theory.
Explain how the prices of related goods also affect demand
Please provide the best answer for the statement.