Differentiate between a managed exchange rate and a fixed exchange rate
What will be an ideal response?
If the government of a country sets a long-run value for the exchange rate and intervenes to defend that value, the exchange rate is said to be fixed. On the contrary, if the government often intervenes actively in the foreign exchange market without setting value for the exchange rate, the exchange rate is said to be managed.
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Foreign money needed to carry out international transactions is known as _____
A) trade B) import and export C) balance of payments D) foreign exchange.
The following graph is the production possibility curve for a three-person economy, with workers Janna, Drew, and Karl.
The slope of the PPC between points X and Y is determined by ________ opportunity cost.
A. Janna's B. Kari's C. Drew's D. Janna and Drew's