In country A, the government takes no action to influence the exchange rates of its currency with other currencies. The rate is determined by market forces. Country A is said to have a:
A) flexible exchange rate system. B) fixed exchange rate system.
C) dirty-float exchange rate system. D) nominal exchange rate system.
A
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Zelda won the jackpot on a penny slot machine in Las Vegas and is given the following three options to receive her jackpot:
Option 1: $100,000 to be received right away, with four additional payments of $100,000 to be received each year for the next four years. Option 2: $250,000 to be received right away with two additional payments of $100,000 to be received each year for the next two years. Option 3: $400,000 to be received right away. Which option should Zelda choose if the interest rate is 8%? Would she choose the same option if the interest rate was 10%? Why?
One reason for the projected increase, over the next several decades, in government spending as a percentage of GDP is the projected increase in the size of the elderly population
a. True b. False Indicate whether the statement is true or false
Suppose Karl divides his time between making birdhouses and growing artichokes. Karl's friend recently gave Karl some new woodworking tools that greatly reduced the amount of time it takes Karl to make each birdhouse, but the new tools had no impact on the amount of time it takes Karl to grow artichokes. Thus, the new tools ________ Karl's opportunity cost of growing artichokes.
A. had no effect on B. halved C. decreased D. increased
What does the Coase Theorem predict?
What will be an ideal response?