Which type of exchange rate system minimizes external shocks to an economy?
What will be an ideal response?
A flexible exchange rate system
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Which of the following will NOT affect the elasticity of demand for a product?
A. the cost of producing the product B. the number of substitutes C. the percentage of the consumer's budget spent on the product D. how long consumers have to adapt to price changes E. all of the above will affect the elasticity of demand for a product
If the demand for umbrellas is price inelastic,
A. the percentage change in quantity demanded is greater than the percentage change in price. B. changes in price do not affect the number of umbrellas demanded. C. the percentage change in price is less than the percentage change in quantity demanded. D. if more umbrellas are sold as the result of a price decrease, total expenditures by consumers on umbrellas will decrease. E. none of the above