A system of exchange rate determination with no central bank intervention is a
a. fixed exchange rate system.
b. flexible exchange rate system.
c. floating exchange rate system.
d. either a flexible or a floating exchange rate system.
D
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The price system takes into account consumer preferences in the distribution of goods and services
a. True b. False Indicate whether the statement is true or false
If the Fed wishes to reduce nominal interest rates, it must engage in an open market ________ of bonds that ________ the money supply.
A. sale; decreases B. purchase; decreases C. sale; increases D. purchase; increases
Give an equation that shows the relationship between excess reserves, maximum checkable-deposit expansion, and the monetary multiplier.
What will be an ideal response?
Total variable costs
A. initially decrease and then increase with output. B. always increase with output. C. initially increase as output increases, and then decrease. D. always decrease with output.