Which of the following is true of a country with a managed exchange rate system?
A) The central bank of the country always pursues contractionary monetary policy.
B) The current account balance of the country is always positive.
C) The current account balance of the country is always negative.
D) The central bank of the country actively intervenes to influence the exchange rate.
D
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Which of the following statements regarding accounting and economic profits is FALSE?
A) Economic profits can be zero even if accounting profits are positive. B) Economic profits = total revenue - (explicit + implicit costs) C) Accounting profits can be negative if economic profits are positive. D) Accounting profits = total revenue - explicit costs
The major difference between nominal GDP and real GDP is that
A. real GDP is the absolute value of goods and services and nominal GDP is a relative value. B. real GDP refers to products made in the United States and nominal GDP refers to both exports and imports. C. nominal GDP is the market value and real GDP has been adjusted for inflation. D. real GDP is a relative value and nominal GDP is an absolute value.