Which of the following is not an advantage of flexible exchange rates?
a. Flexible exchange rates provide businesses with protection against business risks associated with monetary base and the money supply changes.
b. Flexible exchange rates provide businesses with protection against business risks associated with exchange rate changes.
c. Flexible exchange rates absorb economic shocks.
d. Flexible exchange rates allow a nation to pursue an independent monetary policy.
.B
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Which of the following is NOT included using the transactions approach to measuring the money supply (M1)?
A) certificates of deposit B) traveler's checks C) currency D) transaction deposits
A monopoly has
a. A perfectly elastic demand curve b. A perfectly elastic supply curve c. An inelastic demand curve d. A more elastic demand curve than a competitive firm
The highly centralized economies of North Korea and Cuba are ______ economies.
a. command b. mixed c. market d. traditional
The assumption we usually make about all firms is that they wish to
A. maximize profits. B. maximize market share. C. maximize sales. D. minimize costs.