Which of the following is an advantage of fixing exchange rates?
A) limiting foreign exchange risk
B) making residents more mobile across countries
C) eliminating trade deficits
D) making the prices of foreign goods more flexible in the domestic market
Answer: A
You might also like to view...
Alex must prepare for exams in both biology and economics this week. Assume that the production possibilities curve showing the tradeoff between exam scores in biology and economics is concave toward the origin. As Alex moves along the curve spending more of his time studying for economics, the opportunity cost of an hour of preparation for economics: a. increases
b. remains constant. c. decreases. d. first increases then decreases.
A government will create a surplus in a market when it:
A. Sets a price ceiling above the equilibrium price B. Sets a price floor above the equilibrium price C. Sets a price floor below the equilibrium price D. Sets a price ceiling below the equilibrium price