In an open economy with global capital markets and mobile capital:
A) a country has control over both its domestic money supply and exchange rate.
B) a country has control of either its domestic money supply or exchange, but not both.
C) a country only has control over its domestic money supply.
D) a country only has control over its exchange rate.
B
You might also like to view...
Which of the following statements explains why trading partners are often concerned about each other's labor standards?
I. From a humanitarian perspective, people do not want to buy products if workers are in oppressive conditions. II. Unions realize that low standards for labor will be less costly, and those products will compete more effectively with products produced at home. III, Some nations do not enforce their own lax labor standards, but have also signed on to trade agreements. a. I b. II c. II and III d. I, II, and III
What is the average product of labor, given that the level of labor equals 10, total output equals 1200, and the marginal product of labor equals 200?
A. 6 B. 20 C. 120 D. 2,000