Distinguish between fixed and flexible exchange rate systems

What will be an ideal response?


A fixed exchange rate system is a system in which governments peg exchange rates to prevent their currencies from fluctuating. A flexible exchange rate system is a system in which exchange rates are determined by free markets.

Economics

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The level of GDP at which planned expenditure equals the amount of output produced is the

A) equilibrium output. B) potential output. C) long-run output. D) autonomous output.

Economics

The "law of demand" is illustrated by a

A) rightward shift of the demand curve. B) leftward shift of the demand curve. C) movement along the demand curve. D) Both answers A and B are correct.

Economics

In the early 2000s, Chinese officials indicted members of a forgery syndicate that sold several hundred diplomas to high school graduates who needed the diplomas to take employment tests. This situation, where having the certificate of knowledge is more important than the knowledge itself, is known as:

A. the brain drain. B. human capital. C. certification. D. credentialism.

Economics

Business managers are people who:

A. run businesses on a day-to-day basis. B. entertain the workers. C. engage exclusively in business travel. D. own the physical capital used in production.

Economics