How does a country maintain a fixed exchange rate?
A) By intervening in the foreign exchange markets and buying or selling currency as needed to achieve the desired exchange rate.
B) By forbidding foreign exchange markets to trade currency at anything other than the official exchange rate.
C) By setting domestic interest rates to achieve purchasing power parity as the desired exchange rate.
D) By intervening in import and export markets to achieve the desired current account and exchange rate.
A
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The economy of China is in transitioon. What does this mean?
a) investments are determines by state conrtol instead of by private decision b) The conomy is moving from central planning toward a market-based system c) Individual firms are in the process of being sold to the state
If individuals start paying off the large amount of credit card debt they now hold,
A) the supply of loanable funds will shift rightward. B) the supply of loanable funds will shift leftward. C) the demand for loanable funds will shift rightward. D) the demand for loanable funds will shift leftward. E) an excess demand for loanable funds emerges and persists.