Foreign exchange market intervention is most effective when:
a. each country's political leaders agree to cooperate fully with the process.
b. leading economists in each country believe that intervention is needed.
c. permanent differences between the free market exchange rate and the fixed exchange rate are expected.
d. temporary differences between the free market exchange rate and the fixed exchange rate are expected.
e. all the countries restrict the international movement of goods and services.
d
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The importance of international trade in the U.S. economy
A) has been decreasing and is expected to continue to decrease. B) has been decreasing but is expected to start to increase. C) has been increasing and is expected to continue to increase. D) has been increasing but is expected to decrease in the future.
The outcome of the game in the figure shown will be:
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.
A. Joe puts forth high effort and Sarah puts forth low effort.
B. Joe puts forth low effort and Sarah puts forth high effort.
C. Joe and Sarah both put forth low effort.
D. Joe and Sarah both put forth high effort.