One of the disadvantages of a fixed exchange rate system is:
a. too much stability in exchange rates
b. import and export industries forego the benefits of highly variable exchange rates.
c. that to maintain fixed exchange rates, nations must give up control of their monetary policies.
d. None of the above are disadvantages of a fixed exchange rate system.
c
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A ________ traces out the behavior of the economy over time
A) dynamic equilibrium B) static equilibrium C) steady-state equilibrium D) comparative equilibrium
Americans needing foreign currencies get those currencies from a bank. The ultimate source of these currencies is
a. U.S. investments abroad. b. U.S. sales to foreign countries. c. U.S. purchases of foreign goods, services, and assets. d. the International Monetary Fund.
When the government uses a command-and-control policy to solve an externality, it
a. is usually the most effective policy option available. b. creates policies that directly regulate behavior. c. usually involves taxing the consumption of a commodity. d. typically refers to the Coase theorem to structure the policy.
A consultant predicts that there is a 25% chance of earning $500,000 and a 75% chance of earning $100,000. The expected profit is $200,000. What is the standard deviation?
What will be an ideal response?