With flexible exchange rates, the imbalance between debits and credits arising from shifts in currency demand and/or supply is accommodated through special financial borrowings or reserve movements

a. True
b. False
Indicate whether the statement is true or false

False

Economics

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How does the long-run equilibrium of a monopolistically competitive industry differ from that of a perfectly competitive industry?

A) A firm in monopolistic competition will charge a price higher than the average cost of production but a firm in perfect competition charges a price equal to the average cost of production. B) A firm in monopolistic competition will earn economic profits but a firm in perfect competition earns zero profit. C) A firm in monopolistic competition produces an allocatively efficient output level while a firm in perfect competition produces a productively efficient output level. D) A firm in monopolistic competition does not take full advantage of its economies of scale but a firm in perfect competition produces at the lowest average cost possible.

Economics

When the Fed alters the types of assets it owns, it is engaging in

A) international balance management. B) forward guidance. C) quantitative easing. D) changing the discount rate.

Economics