Refer to Scenario 10.3. What level of output maximizes revenue?

One major advantage to a fixed exchange rate system is

A) that exchange rate volatility is eliminated. B) that hedging strategies can be implemented. C) that fixed exchange rate nations seldom have credit risk problems. D) that systemic risk is eliminated.

All of the following have been proposed as reasons for an unusually high level of uncertainty following the financial crisis of 2007-2009 EXCEPT:

A) the severity of the financial crisis B) concerns of small businesses regarding how the Affordable Care Act would affect the cost of hiring workers C) concerns by households and firms regarding potential tax increases and spending cuts scheduled to take place in January 2013 D) the Fed indicating that it would withdraw stimulus as soon as there was any evidence of economic recovery