If a country has a fixed exchange rate,
A) the equilibrium exchange rate in that market does not respond to changes in supply and demand for currency.
B) the exchange rate is allowed to fluctuate in response to changes in the supply and demand for currency.
C) central banks have more control over real GDP in the economy.
D) central banks must buy and sell their holdings of currencies to maintain a given exchange rate.
D
Economics
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When the wages paid to government economists increase, the labor supply curve for academic economists
a. shifts to the left. b. shifts to the right. c. will become backward-sloping. d. will not change.
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