One advantage of a managed float exchange rate system compared to a floating exchange rate system is
A) it allows the exchange rate to reflect demand and supply in the market.
B) there is no need for government intervention.
C) it allows greater exchange rate stability.
D) it eliminates the possibility of depreciation during a recession.
C
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Which of the following equations captures the aggregate capital stock of the economy in this year, Know?
A) Know = (1 - depreciation rate) × Klastyear + I B) Know = (1 + depreciation rate) × Klastyear + I C) Know = (1 - depreciation rate) × Klastyear × I D) Know = (1 - depreciation rate) × Klastyear - I The depreciation rate of capital in an economy is 10%. The investment on capital in the current year is $500.
A monopolistically competitive firm has ________ power to set the price of its product because ________
A) no; there are no barriers to entry B) some; there are barriers to entry C) no; of product differentiation D) some; of product differentiation