For a country which has a relatively high rate of inflation and wants some form of pegged exchange rate, which of the following exchange-rate regimes is the best choice?

A. Adjustable peg
B. Crawling peg
C. Fully fixed exchange rate
D. Fully convertible currency

Answer: B

Economics

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Suppose Larry's Lariats produces lassos in a factory, and uses nine feet of rope to make each lasso. The rope is put into a machine that automatically cuts it to the right length, then seals the ends to prevent fraying. The rope is then hand tied, dipped, and wound before being placed in a packaging machine to prepare it for retail sale. Which of the following would be considered a variable cost for this company?

A. Employee wages B. The cost of the factory C. The rope-cutting machine D. All of these expenses would be included in variable costs.

Economics