Which of the following is not a criticism of flexible exchange rates?
a. All of the following.
b. They are volatile, which increases risks for importers and exporters.
c. They could affect employment and increase demand for trade restrictions.
d. They do not allow for discretionary monetary policy.
e. They allow central banks to follow expansionary monetary policies.
D
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Once a country has lost its comparative advantage in producing a good, its income will be ________ and its economy will be ________ if it switches from producing the good to importing it
A) higher; less efficient B) lower; less efficient C) higher; more efficient D) lower; more efficient
Which of the following are true statements about IBFs?
A) IBFs are subject to reserve requirements. B) IBFs are allowed to receive deposits from, and make loans to, nonresidents of the U.S. or other IBFs. C) IBFs are subject to interest rate regulations. D) All of the above.