Refer to the scenario above. If India wants to repay a lower sum of money to the U.S., it should:
A) peg the exchange rate below 50 rupees per dollar.
B) peg the exchange rate to 60 rupees per dollar.
C) continue to use a flexible exchange rate regime.
D) peg the exchange rate to 70 rupees per dollar.
A
You might also like to view...
If government regulations make a certain job less dangerous, then we'd expect that the supply of labor for that job would
a. increase, which by itself would raise the wage for that job. b. increase, which by itself would reduce the wage for that job. c. decrease, which by itself would raise the wage for that job. d. decrease, which by itself would reduce the wage for that job.
Because of their effect on interest rates,
A. capital flows weaken monetary policy but strengthen fiscal policy. B. capital flows strengthen monetary policy but weaken fiscal policy. C. the initial effects of a fiscal expansion on aggregate demand are strengthened. D. the initial effects of a monetary contraction are weakened.