The basic type of intervention by central banks under the managed floating exchange rate system is to:
A. Readjust the peg for exchange rates
B. Buy and sell currencies to influence supply and demand for foreign exchange
C. Renegotiate the rate at which foreign currencies can be converted into gold
D. Make pronouncements but then do nothing and let the market set the exchange rate
B. Buy and sell currencies to influence supply and demand for foreign exchange
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Which of the following shifts the demand for loanable funds curve leftward?
A) a fall in the real interest rate B) a rise in the real interest rate C) a decrease in the taxes paid by the business D) a decrease in the expected profit
If reckless drivers are more likely to buy automobile insurance than safe drivers are
A) a moral hazard has occurred. B) adverse selection has occurred. C) the market for insurance is efficient. D) then automobile insurance will be fairly priced.