When a group of nations adhere to a strict fixed exchange rate system, then
a. no country will experience inflation or recession.
b. each nation loses some control of its monetary policy and its domestic economy.
c. each nation is able to exercise more control of its fiscal policy and aggregate demand.
d. each nation is able to exercise more control of its monetary policy and its domestic economy.
B
You might also like to view...
Which of the following would be consistent with the notion of a competitive market process, but would be inconsistent with the notion of perfect competition?
A) Cost-plus-markup pricing B) Freedom of entry C) Price taking behavior D) Large numbers of buyers and sellers E) All of the above.
When a natural monopoly is regulated using an average cost pricing rule, what can you say about the firm's profit and the market's efficiency?
What will be an ideal response?
As the price of a resource falls, all else constant, we observe that:
a. firms substitute the expensive resource for the relatively cheaper resources. b. firms substitute the cheaper resource for the relatively expensive resources. c. the firm's ability to hire the relatively cheaper resources decreases. d. the firm's ability to hire the relatively expensive resources decreases.
Normal Balance
What will be an ideal response?