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Author Question: Under fixed exchange rates balance of payments problems will NOT be caused by (Read 81 times)

elizabeth18

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Question 1

The risk that a foreign country's government or central bank will make its policies less favourable for businesses is
◦ sovereign risk.
◦ political risk.
◦ exchange risk.
◦ a moral hazard problem.

Question 2

Under fixed exchange rates balance of payments problems will NOT be caused by
◦ faster growth.
◦ improvement in the terms of trade.
◦ higher inflation in this country than in other countries.
◦ the income elasticity of demand for imports being higher than the income elasticity of demand for exports.


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Marked as best answer by elizabeth18 on May 25, 2020

bbburns21

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elizabeth18

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Reply 2 on: May 25, 2020
Great answer, keep it coming :)


skipfourms123

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Reply 3 on: Yesterday
Wow, this really help

 

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