Because of the ERM, if Britain desires to maintain fixed exchange rates, then what would Britain be forced to do after German reunification?
A) It would increase its interest rate and follow the central country's lead.
B) It would ignore the increase in the German interest rate and hope for the best.
C) It would change over to an exchange rate regime based on gold.
D) It would decrease its interest rate to stimulate its economy
Ans: A) It would increase its interest rate and follow the central country's lead.
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Which of the following will NOT cause a shift in the supply of gasoline?
A) An increase in the wage rate of refinery workers B) A decrease in the price of gasoline C) An improvement in oil refining technology D) A decrease in the price of crude oil
Which of the following is true?
a. A fall in a good's price leads to a decrease in quantity demanded, illustrated by moving along a demand curve. b. According to the law of demand, other things equal, when the price of a good or service falls, demand increases.c. A change in demand for chocolate bars is caused by a change in the price of chocolate bars d. None of the above is true.