Adhering to a strict fixed exchange rate system means that
A. no country will experience inflation or recession.
B. each nation improves control over its money supply.
C. each nation loses some control of its monetary policy and its domestic economy.
D. each nation improves control over its fiscal policy and aggregate demand.
Answer: C
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Which of the following is the rate of unemployment that occurs after all adjustments in the labor market have occurred?
A) the structural rate of unemployment B) the cyclical rate of unemployment C) the natural rate of unemployment D) the frictional rate of unemployment
As illustrated in the textbook, the government can further increase the support price of a commodity by purchasing excess supplies and using a:
A) production quota. B) consumption tax. C) excess profits tax. D) minimum wage.
When prices fall and the cash balances that you hold in your wallet are worth more allowing you to purchase more with your money, then this explains why the aggregate demand curve is downward sloping. The effect that describes this phenomena is the:
A. Real balances effect B. Foreign trade effect C. Interest rate effect D. Nominal income effect
Suppose two countries have per capita real GDP of $20,000 in 2017. Country A has a growth rate of 4 percent and Country B has a growth rate of 5 percent. By 2020, the per capita real GDPs for the two countries, respectively, are (rounded)
A. $22,400 and $23,000. B. $25,000 and $26,500. C. $21,630 and $22,050. D. $22,500 and $23,150.