One advantage of a fixed exchange rate system compared to a floating or managed float exchange rate system is
A) it is easier for central banks to control inflation.
B) there is no need for government intervention.
C) it allows the exchange rate to reflect demand and supply in the market.
D) it eliminates the possibility of depreciation during a recession.
A
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Over the years, the U.S. economy has become increasingly
A) monopolistic. B) oligopolistic. C) competitive. D) cartelized.
Which of the following is an example of incomplete information?
a. A seller losing out on profits because the market price rises above the pre-contracted price. b. An insurer refuses to bear the complete cost of a treatment. c. An insured car driver driving carelessly on the highway. d. A new household appliance starts malfunctioning after two weeks.
Most occurrences of Acquired Immune Deficiency Syndrome can be prevented by:
A. administration of antibiotics. B. avoiding risky behavior. C. diet and exercise. D. the prophylactic use of a vaccine.
When demand is price-inelastic, ceteris paribus, an increase in
A. Price leads to greater total revenue. B. Total revenue indicates a reduction in price. C. Price leads to lower total revenue. D. Total revenue means quantity rises.