In order to maintain an effective fixed exchange rate that differs from the market rate, the government must have
a. arbitrage capability
b. a surplus of merchandise exports
c. the ability to persuade other governments to control their exports
d. sufficient foreign exchange reserves
e. the ability to float high interest rates
D
Economics
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Which market model assumes the least number of firms in an industry?
A. Monopolistic competition B. Pure competition C. Pure monopoly D. Oligopoly
Economics
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.
Economics