Which of the following statements is true?

A. International capital-flow shocks have domestic effects under fixed exchange rates but not under floating exchange rates.
B. A domestic monetary shock is less disruptive with floating exchange rates.
C. With floating exchange rates, the transmission of business cycles through foreign trade and repercussion is less than with fixed exchange rates.
D. If foreign capital is highly responsive to changes in interest rates, then domestic spending shocks are less disruptive with fixed exchange rates.


Answer: C

Economics

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A. Year 1 B. Year 2 C. Year 4 D. Year 5

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When the percentage change in the quantity supplied is less than the percentage change in price, the supply is

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Economics

A good example of central planning at work in the U.S. is:

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Economics