Differentiate between a managed exchange rate and a fixed exchange rate
What will be an ideal response?
If the government of a country sets a long-run value for the exchange rate and intervenes to defend that value, the exchange rate is said to be fixed. On the contrary, if the government often intervenes actively in the foreign exchange market without setting value for the exchange rate, the exchange rate is said to be managed.
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"For goods that are unrelated in consumption, efficiency requires that tax rates be inversely proportional to elasticities." This is the definition of
A. the benefits-received principle. B. the Ramsey Rule. C. the second best principle. D. the inverse elasticity rule.
A self-managed team is still headed by a boss
Indicate whether the statement is true or false
Exhibit 4-8 Demand and supply curves
In Exhibit 4-8, a movement from A to C is best described as a(n):
A. increase in the quantity supplied and a decrease in the demand. B. decrease in the quantity supplied and a decrease in demand. C. decrease in the quantity supplied and an increase in demand. D. decrease in the quantity demanded and a decrease in supply.
The slope of a production possibilities frontier measures:
A. inefficient production of a good. B. the trade-off in the consumption of one good versus the other good C. how much of the resources must be used in order to produce one the goods. D. the opportunity cost of producing one good in terms of the other good.