In a fixed exchange rate system, speculation regarding an expected revaluation or devaluation of a currency makes it more difficult to maintain the existing exchange rate
Indicate whether the statement is true or false
TRUE
You might also like to view...
A good reason for policy makers to pursue a goal of stabilizing economic activity is that ________
A) high inflation is always accompanied by high variability of inflation B) high unemployment causes human misery and lost output C) in a stable economy, there is little or no structural inflation D) all of the above E) none of the above
Which of the following is the most difficult to measure? Changes in ________
A) the size of the labor force B) population C) the quantity of labor D) productivity
A government that uses a bureau rather than a private firm to provide some good or service
a. may have less opportunity for officials and legislators to reward friends and supporters with jobs b. will always incur higher costs of production c. will lose the ability to make decisions via the hierarchy of the market d. may be better able to control details of production e. will not be able to sell the good or service after it is produced
Seasonal unemployment
a. is short-term joblessness experienced by those entering the labor market for the first time b. arises from a mismatch between available jobs and workers' skills or geographic location c. is joblessness affecting people such as construction workers, farm workers and retail sales clerks after the Christmas shopping season d. is joblessness resulting from business cycle movements e. does not exist when the economy is at full employment