Multiple Choice
Which one of the following is NOT an alleged disadvantage of a flexible exchange rate system?
A) possibility of destabilizing speculation
B) wasteful resource movements between industries
C) increased need for international reserves
D) danger of a "vicious circle" between inflation in a country and depreciation of that Country's currency
Correct Answer:
Verified
Correct Answer:
Verified
Q13: If an important oil exporter such as
Q14: Other things equal, a domestic monetary or
Q15: If a country's BP curve is flatter
Q16: The view that inflation in a country
Q17: In theory, business cycles are _ likely
Q19: Proponents of fixed exchange rates would find
Q20: If a country adopts a currency board
Q21: How could exchange rate protection of, for
Q22: In a situation of imperfect short-term capital
Q23: If virtually all speculators buy a currency