The Fed in the U.S

A) allows a flexible exchange rate, though their actions can impact the exchange rate.
B) has no influence on the exchange rate.
C) sells U.S. dollars to China in an attempt to depreciate the U.S. dollar.
D) alternates between a flexible, fixed, and crawling peg exchange rate policy depending on economic conditions.

A

Economics

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The impact effect is the

A) zero period dynamic multiplier. B) h period dynamic multiplier, h>0. C) cumulative dynamic multiplier. D) long-run cumulative dynamic multiplier.

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Graphically, the area that represents the difference between the market price and the minimum price required to induce suppliers to produce a good is called

a. consumer surplus. b. producer surplus. c. marginal cost. d. triangular arbitrage.

Economics