Fixed exchange rates require the economic policies of countries linked by the exchange rate to be:

a. completely independent.
b. complementary to each other.
c. determined by the World Bank.
d. similar in nature.
e. determined by the International Monetary Fund.


d

Economics

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In order to ________ the long-run real interest rate, the Fed needs to ________

A) raise; raise the long-run inflation expectations B) raise; lower the long-run nominal interest rate C) lower; raise the long-run nominal interest rate D) lower; raise the long-run inflation expectations

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Oligopolists often sacrifice economies of scale as they expand product variety

a. True b. False

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If the required reserve ratio is 20 percent and a customer deposited $5,000 in the bank, how much is available to the bank for lending?

(A) $3,500 (B) $5,000 (C) $4,000 (D) $1,000

Economics

The supply of product X is unit-elastic if the price of X increases by ________ and, as a result of that price change, the quantity supplied ________

A. 8%; increases by 8%. B. 5%; increases by 7%. C. 7%; increases by 5%. D. 10%; stays the same.

Economics