Economists sometimes say that the current exchange rate system is a dirty float system. What does this mean?
The dirty float system means that fluctuations in currency values are partly determined by market forces and partly influenced by government intervention on behalf of either buying or selling its own currency in the world currency exchange markets.
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A production possibilities frontier shows the combinations of various goods that should be produced.
Answer the following statement true (T) or false (F)
The above figure plots income and consumption in a nation. In 2007
A) consumption was equal to $25,000 and income was equal to $28,000. B) consumption was equal to $28,000 and income was equal to $25,000. C) consumption was equal to $25,000 and income was equal to $25,000. D) consumption was equal to $27,000 and income was equal to $31,000.
Liquidity is:
A. a measure of how easily a particular asset can be converted quickly to cash without much loss of value. B. the speed with which dollars are spent in the economy. C. the speed with which physical dollars change hands in the economy. D. the magnitude of change in the money supply as controlled by the Fed.
Consumption expenditures were previously the largest component of GDP, but with the growth of government and government expenditures, this is no longer true
a. True b. False Indicate whether the statement is true or false