Which of the following is true?
A) If an exchange rate is allowed to vary across a fixed basket of currencies, it is called a hard peg.
B) If an exchange rate is not allowed to vary against the target currency, it is called a soft peg.
C) If an exchange is only allowed to fluctuate within a set band, it is considered to be a flexible exchange rate system.
D) A soft peg is when a currency's exchange rate is only allowed to fluctuate within a set band.
D
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In the Keynesian view, a reduction in the marginal income tax rate would cause
a. output to rise and the price level to fall. b. both output and the price level to rise. c. output to rise with the price level unchanged. d. the price level to rise with output unchanged.
If goods X and Y are such that the cross price elasticity between them is negative, and if the income elasticity of X is negative, then these goods are:
a. inferior complements. b. luxury complements. c. income elastic substitutes. d. normal substitutes. e. income elastic complements.