Fixed exchange rates restrict macroeconomic policy more than flexible exchange rates.
Answer the following statement true (T) or false (F)
True
Fixed exchange rates limit policy flexibility, because the choice of macroeconomic policies is limited to those that are consistent with the fixed exchange rate. No such limits exist under flexible exchange rates because the market, not government policy, determines the exchange rate.
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The above figure shows a graph of the market for pizzas in a large town. No pizzas will be demanded unless price is less than
A) $0. B) $5. C) $12. D) $14.
What happens to an incumbent firm's demand curve in monopolistic competition as new firms enter?
A) It shifts right. B) It shifts left. C) It becomes horizontal. D) New entrants will not affect an incumbent firm's demand curve.
Suppose the per capita GDP of Petrovia was $2 million in 1966 . If it grows at an annual rate of 8 percent per year, its per capita GDP after 2 years will be _____
a. $2.3 million b. $9.8 million c. $15.5 million d. $5.1 million
Long-run equilibrium in the goods and services market requires that decision makers who agreed to long-term contracts must have
a. incorrectly anticipated the level of prices when they made the agreements. b. correctly anticipated the level of prices when they made the agreements. c. correctly anticipated the natural rate of unemployment when they made the agreements. d. correctly anticipated actual GDP when they made the agreements.