Suppose that country A pegs its currency to the currency of country B. Which of the following will NOT be a benefit of this arrangement to country A?
A) lower transactions costs for A to conduct international trade with country B
B) increased capital flows between the two countries because of increased certainty of future exchange rates
C) decreased migration between the two countries because of increased certainty of future exchange rates
D) lower costs of economic transactions costs between the two countries, leading to welfare gains for country A
Ans: C) decreased migration between the two countries because of increased certainty of future exchange rates
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Refer to the above figure. If the farmer has 50 acres of land, the farmer is producing at point a, and an acre of land yields 400 bushels of beans or 800 bushels of wheat, how much land is devoted to the production of wheat?
A) 8.5 acres B) 10 acres C) 12.5 acres D) 15 acres
The net investment income from abroad is U.S. investment earnings from foreign assets minus what?
a. foreigners earnings from their U.S. assets b. foreigners earnings from investments at home c. U.S. investors stock market earnings d. U.S. bondholders earnings from interest abroad
What is one benefit provided by Social Security?
What will be an ideal response?
The transfer by check of a demand deposit written on one bank into another bank with no excess reserves gives the recipient bank additional liabilities
What will be an ideal response?