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Author Question: If a country has a fixed exchange rate, A) the equilibrium exchange rate in that market does not ... (Read 207 times)

Destiiny22

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on: Jun 29, 2018
If a country has a fixed exchange rate,
 
  A) the equilibrium exchange rate in that market does not respond to changes in supply and demand for currency.
  B) the exchange rate is allowed to fluctuate in response to changes in the supply and demand for currency.
  C) central banks have more control over real GDP in the economy.
  D) central banks must buy and sell their holdings of currencies to maintain a given exchange rate.

Question 2

What is efficiency?
 
  What will be an ideal response?


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Leostella20

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Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

Efficiency is the condition in which the economy is producing what people want at the least possible cost.


Destiiny22

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Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

AngeliqueG

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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