The mechanism behind the inflation insulation provided by a floating exchange rate is

A) Purchasing Power Parity.
B) a fixed AA curve.
C) market speculation.
D) tight monetary policy.
E) symmetry.

A

Economics

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Which of the following does NOT lead to an increase in potential GDP?

A) labor force grows B) technological change takes place C) new machinery and equipment are installed D) aggregate expenditures increase

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