Author Question: How does a country maintain a fixed exchange rate? A) By intervening in the foreign exchange ... (Read 162 times)

FButt

  • Hero Member
  • *****
  • Posts: 519
How does a country maintain a fixed exchange rate?
 
  A) By intervening in the foreign exchange markets and buying or selling currency as needed to achieve the desired exchange rate.
  B) By forbidding foreign exchange markets to trade currency at anything other than the official exchange rate.
  C) By setting domestic interest rates to achieve purchasing power parity as the desired exchange rate.
  D) By intervening in import and export markets to achieve the desired current account and exchange rate.

Question 2

If a decrease in the price of gasoline increases the demand for large cars, then
 
  A) gasoline and large cars are substitutes in consumption.
  B) gasoline and large cars are complements in consumption.
  C) gasoline is an inferior good.
  D) large cars are an inferior good.



chjcharjto14

  • Sr. Member
  • ****
  • Posts: 342
Answer to Question 1

A

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

Did you know?

Cyanide works by making the human body unable to use oxygen.

Did you know?

Drug-induced pharmacodynamic effects manifested in older adults include drug-induced renal toxicity, which can be a major factor when these adults are experiencing other kidney problems.

Did you know?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

Did you know?

Multiple experimental evidences have confirmed that at the molecular level, cancer is caused by lesions in cellular DNA.

For a complete list of videos, visit our video library