This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What is the drawback for a country that chooses to fix its exchange rate? a. Fixing the exchange ... (Read 99 times)

daltonest1984

  • Hero Member
  • *****
  • Posts: 536
on: Jun 30, 2018
What is the drawback for a country that chooses to fix its exchange rate?
 a. Fixing the exchange rate can deteriorate the international competitiveness because the real exchange rate can't fluctuate anymore.
  b. Businesses in the country are more exposed to business risks associated with exchange rate changes.
  c. The central bank loses its ability to influence the money supply, unless severe capital controls are imposed.
  d. Fixing the exchange rate has no disadvantages and should be adopted by all countries.

Question 2

Cashing out capital gains in Virtual Currency System 3 (i.e., turning virtual capital gains into real world currencies) causes the nation's:
 a. Monetary base to rise.
  b. M2 money supply to rise.
  c. M2 money multiplier to rise.
  d. Monetary base to remain the same.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Pswine

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Jun 30, 2018
Answer to Question 1

.C

Answer to Question 2

.D


daltonest1984

  • Member
  • Posts: 536
Reply 2 on: Jun 30, 2018
Excellent

Dnite

  • Member
  • Posts: 297
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

The Centers for Disease Control and Prevention (CDC) was originally known as the Communicable Disease Center, which was formed to fight malaria. It was originally headquartered in Atlanta, Georgia, since the Southern states faced the worst threat from malaria.

Did you know?

The National Institutes of Health have supported research into acupuncture. This has shown that acupuncture significantly reduced pain associated with osteoarthritis of the knee, when used as a complement to conventional therapies.

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

Did you know?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

The ozone hole in September, 2003. Even as scientists verified that the rate of ozone depletion was The ozone hole in September, 2003. Even as scientists verified that the rate of ozone depletion was
Fluidization - Reaction Rate Chart Fluidization - Reaction Rate Chart
Determining the order and rate constant of an irreversible first-order reaction Determining the order and rate constant of an irreversible first-order reaction
Cost of Copying for the Follower Country Cost of Copying for the Follower Country
The respiratory system and the process of gas exchange The respiratory system and the process of gas exchange
Chloride and bicarbonate exchange in the renal tubules and effect of aldosterone on excretion of H+ Chloride and bicarbonate exchange in the renal tubules and effect of aldosterone on excretion of H+
Video: Simple Diffusion - Ion transport

For a complete list of videos, visit our video library