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Author Question: Distinguish between fixed and flexible exchange rate systems. What will be an ideal ... (Read 60 times)

CORALGRILL2014

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on: Jun 29, 2018
Distinguish between fixed and flexible exchange rate systems.
 
  What will be an ideal response?

Question 2

When the price level increases, aggregate planned expenditure decreases, which leads to
 
  A) a rightward shift of the aggregate demand curve.
  B) neither a movement along nor a shift of the aggregate demand curve.
  C) a downward movement along the aggregate demand curve.
  D) an upward movement along the aggregate demand curve.
  E) a leftward shift of the aggregate demand curve.


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kingdude89

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

A fixed exchange rate system is a system in which governments peg exchange rates to prevent their currencies from fluctuating. A flexible exchange rate system is a system in which exchange rates are determined by free markets.

Answer to Question 2

D


CORALGRILL2014

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

mammy1697

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

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