Critics of flexible exchange rates argue that flexible rates:
a. reduce uncertainty in international trade
b. automatically create an equilibrium price for each currency in the foreign exchange market.
c. make nations more constrained in carrying out internal macroeconomic policies.
d. increase uncertainty in international trade.
d
Economics
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A model:
A) is often based on simplifying assumptions that are not necessarily true. B) can be tested without data or statistics. C) is a more complex representation of reality than a theory. D) can never be used to predict the future but helps explain the past.
Economics
If consumption of a good is subsidized by the government, then the MU/P of that good among consumers will:
A. Decrease B. Become negative C. Increase D. Not be affected
Economics