Generally, which of the following is the most common reason why countries that experienced a financial crisis could not maintain their fixed exchange rate?
a. They were exporting too many commodities.
b. The rates they had established were not in accordance with directives from the IMF.
c. The exchange rate parities established were inconsistent with their corresponding macroeconomic policies.
d. The general public refused to participate.
e. The parities established made their currencies undervalued.
c
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Assume that when the price of good X is $12, quantity demanded is 32. When price is decreased to $9, quantity demanded increases to 45. Over this range, the arc elasticity of demand is 1.182
Indicate whether the statement is true or false
The movement of individuals and households from one income quintile to another over time is called:
A. income averaging. B. wealth turnover. C. income mobility. D. the ratchet effect.