Author Question: The Fed in the U.S. A) allows a flexible exchange rate, though their actions can impact the ... (Read 35 times)

fahad · **on:** Jun 29, 2018

The Fed in the U.S.

A) allows a flexible exchange rate, though their actions can impact the exchange rate.
B) has no influence on the exchange rate.
C) sells U.S. dollars to China in an attempt to depreciate the U.S. dollar.
D) alternates between a flexible, fixed, and crawling peg exchange rate policy depending on economic conditions.

Question 2

The figure above illustrates that if this country wishes to have F2 - F1 additional food by moving from point A to point B, it will

A) have to find additional workers, because the country already is operating on its production possibilities frontier.
B) be unable to do so until additional technological progress is made.
C) have to sacrifice C1 - C2 clothing in order to free the resources necessary to produce the additional food.
D) require that all the unemployed resources in the country be put to work.