An advantage of a flexible exchange rate system relative to a fixed system is that in a flexible rate system
a. currency speculation will be reduced.
b. balance of payments surpluses and deficits can be dealt with using fiscal policy, not monetary policy.
c. inflation will be minimized by the "discipline of the balance of payments."
d. the price of imported goods will be kept relatively low.
e. none of the above.
E
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Efficiency in output requires which of the following?
a. MC = MRP. b. MC = MFC. c. MC = MU. d. MC = AVC.
Which of the following statements is true?
A) Positive economics deals with issues that are subjective. B) Normative statements depend on personal preferences. C) Positive economics recommends what people ought to do. D) Normative economic statements can be confirmed or disproven.
The following is a total-product schedule for a resource. Assume that the quantities of other resources the firm employs remain constant.Units of ResourceTotal Product124242460680792If the product the firm produces sells for a constant $3 per unit, the marginal product of the fourth unit of the resource is
A. $15. B. $18. C. $27. D. $45.
During 2005-2006 Europe imported more than $70 million worth of U.S. long-grain rice
In 2006, the European Union threatened to restrict imports of long-grain rice because traces of genetically modified rice were found mixed in to commercial supplies. What would NOT be an effect in the European rice market if U.S. imports were banned? A) There would be an increase in long-grain rice consumption. B) There would be an increase European in rice production. C) The price of long-grain rice would increase. D) The quantity of long-grain rice imports would decrease.