Proponents of the fixed exchange rate system argue that
A) flexible exchange rates may promote international trade, but under a fixed exchange rate system at least we know what the rates will be from day to day.
B) under a flexible exchange rate system, there is too great a chance that the exchange rate will diverge from the equilibrium exchange rate.
C) under a flexible exchange rate system, there is no way of knowing what the exchange rate is at any particular point in time.
D) under a fixed exchange rate system, there would be only one currency.
E) none of the above
E
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Tunitra consumes at a point on her budget line where her marginal rate of substitution exceeds the magnitude of the slope of her budget line. As Tunitra moves toward her consumer equilibrium point, she will move to a
A) lower budget line. B) higher budget line. C) lower indifference curve. D) higher indifference curve.
Explain how low-skilled workers might actually be made worse off from a minimum wage law in terms of working conditions and job training. In addition, what might be the long-run impact on wages and earnings?
What will be an ideal response?
Suppose wages in the market for plumbers increase. Some plumbers start taking on extra plumbing jobs while others cut back on the number of hours they work. What could explain this?
What will be an ideal response?
Which of the following is true about increasing cost industries? a. They use a large portion of available specialized input resources in production
b. In order for industry output to expand, the prices of the specialized inputs will increase. c. Expansion of industry output leads to a higher equilibrium price in the long run. d. All of the above are generally true of increasing cost industries.