Research in the performance of developing nations with exchange rate pegs has shown that:
A) fixed exchange rates are 100% effective in curbing inflation and preventing hyperinflation.
B) fixed exchange rates are 100% ineffective in curbing inflation and preventing hyperinflation.
C) floating exchange rates are more effective in curbing inflation and preventing hyperinflation.
D) fixed exchange rates are neither necessary nor sufficient to curb inflation and prevent hyperinflation.
Ans: D) fixed exchange rates are neither necessary nor sufficient to curb inflation and prevent hyperinflation.
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(Consider This) The supply of higher education in the United States is:
A. highly price elastic. B. highly price inelastic. C. unitary elastic with respect to price. D. perfectly price elastic.
If the (steadily decreasing) marginal benefit of another day spent in the hospital is smaller than the (steadily increasing) marginal cost of an additional day spent in the hospital, the
A. net benefit from the hospital stay is maximized. B. net benefit from the hospital stay must be negative. C. net benefit from the hospital stay must be increasing. D. net benefit from the hospital stay must be decreasing.