One disadvantage of a floating exchange rate system compared to a fixed or managed float exchange rate system is
A) it does not allow the exchange rate to reflect demand and supply in the market.
B) it is difficult to maintain.
C) it can worsen inflation if domestic prices of imports rise quickly.
D) it eliminates the possibility of depreciation during a recession.
C
Economics
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The branch of economics that focuses on outcomes in highly aggregated markets, such as the markets for labor or consumption goods, is called: a. macroeconomics
b. positive economics. c. normative economics. d. microeconomics.
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When disposable income is 2000, how much is consumption?
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