Which of the following is an advantage of fixing exchange rates?
A. making the prices of foreign goods more flexible in the domestic market
B. making residents more mobile across countries
C. limiting foreign exchange risk
D. eliminating trade deficits
Answer: C
Economics
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Russia borrowed funds from the International Monetary Fund in 1989 in exchange for agreeing to undertake certain changes. However, after receiving the funds, Russia spent the funds on other things, making the loan repayment more unlikely to occur
This situation is referred to as A) asymmetric information. B) deceptive knowledge. C) moral hazard. D) adverse selection.
Economics
In the above figure, if the tax rate is increased from 20 percent to 30 percent, tax revenue
A) decreases. B) is constant. C) increases. D) may increase or decrease.
Economics