"Fixed exchange rates are not even an option for most countries." Discuss
What will be an ideal response?
Durable fixed exchange rate arrangements may not even be possible unless countries are willing to maintain strict controls over capital movements (as China does), or, at the other extreme, move to a shared single currency with their monetary partners (as in Europe). Even a country following prudent monetary and fiscal policies is not safe from speculative attacks on its fixed exchange rate.
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A union requirement that a fireman has to be hired to work in a diesel locomotive would be an example of
A) work expansion. B) featherbedding. C) work requirements. D) work stabilization.
According to Keynes, which of the following can be used to slow down an overheated economy?
A. Decrease government purchases. B. Employ more people. C. Decrease taxes. D. Make more money available.