When the exchange rate fluctuates around a fixed central target, allowing for a moderate amount of fluctuation, while tying the currency to the target central rate, the exchange rate is under:
a. a horizontal band.
b. a crawling peg.
c. a managed float.
d. an independent float.
e. a currency board.
a
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The relationship between a firm's advertising expenditure and its profit is studied under:
A) international economics. B) microeconomics. C) public economics. D) macroeconomics.
Expansionary fiscal policy, other things being equal, will tend to: a. increase interest rates. b. increase investment
c. increase net exports. d. all of the above
The open-economy macroeconomic model examines the determination of
a. the output growth rate and the real interest rate. b. unemployment and the exchange rate. c. the output growth rate and the inflation rate. d. the trade balance and the exchange rate.
Suppose that Tom bought a bike from Helen for $195. If Helen's reservation price was $185, and Tom's reservation price was $215, the buyer's surplus from this transaction was:
A. $10 B. $20 C. $215 D. $195