If most of the shocks that buffet the economy come from the output market shocks, then
A) fixed exchange rates are better than flexible exchange rates.
B) flexible exchange rates are better than fixed exchange rates.
C) which system is chosen is not important.
D) fixed exchange rates are better than flexible exchange rates only in the short run.
E) flexible exchange rates are better than fixed exchange rates only in the short-run.
B
You might also like to view...
What type of policies did Adam Smith attack in his book, An Inquiry into the Nature and Causes of the Wealth of Nations?
What will be an ideal response?
If an inverse relationship exists between two variables, then:
A. As one variable increases, the other decreases B. As one variable increases, so does the other C. The two variables are close substitutes for each other D. Both variables increase over time