Under a floating exchange rate system, a country's ability to expand or contract its money supply as it sees fit is limited by the need to maintain exchange rate parity
Indicate whether the statement is true or false.
FALSE
It is argued that under a fixed system, a country's ability to expand or contract its money supply as it sees fit is limited by the need to maintain exchange rate parity. Monetary expansion can lead to inflation, which puts downward pressure on a fixed exchange rate. Similarly, monetary contraction requires high interest rates (to reduce the demand for money). Higher interest rates lead to an inflow of money from abroad, which puts upward pressure on a fixed exchange rate.
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The primary advantage of the American Community Survey is that:
A) it will be a new form that is more interesting to people B) new, more important questions will be asked C) it will provide data annually instead of once every ten years D) more people will be able to understand the questions E) it will be translated into more languages
Peter runs an auto air conditioning repair shop. Because of the phase-out of the
ozone-depleting refrigerants used in older auto air conditioners, auto air conditioning repairers have become subject to numerous new laws and regulations, some of which are costly and burdensome to comply with. Although it costs him more, Peter decides to follow all the statutes and regulations so long as everyone else does the same. Peter has reached his decision in accordance with: A) Rawls's distributive justice theory. B) Utilitarianism. C) Ethical relativism. D) Ethical fundamentalism. E) Kantian ethics.