Which of the following statements is incorrect?
A. A country cannot be open to international capital flows, control its domestic interest rate and fix its exchange rate.
B. A country can be open to international capital flows and fix its exchange rate but could not also control its own domestic interest rate.
C. A country can be open to international capital flows, control its domestic interest rate, and fix its exchange rate.
D. A country can be open to international capital flows and control its own domestic interest rate but it can't fix its exchange rate.
Answer: C
You might also like to view...
The above figure shows the demand and cost curves for a firm in monopolistic competition. The firm earns total revenue of
A) $120. B) $40. C) $160. D) $0.
Changes in inventory are included in the investment component of GDP
a. True b. False Indicate whether the statement is true or false
Suppose a country, whose production and consumption of cell phones is large relative to the world market, has just entered the global market. If the country is a net-importer of cell phones, we would expect the world:
A. supply curve to shift more to the left than the world demand curve as a result. B. demand curve to shift more to the right than the world supply curve as a result. C. demand curve to shift more to the left than the world supply curve as a result. D. supply curve to shift more to the right than the world demand curve as a result.
The basic difference between macroeconomics and microeconomics is that
What will be an ideal response?