! a) A fixed exchange rate is preferable to aflexible exchange rate becauseaggregate economic policies will be moreeffective.it is less costly to finance balance-of-payments disequilibria.periodic devaluations or revaluations will beunnecessary.None of these.b) The economy is in short-run equilibriumGroup of answer choicesat any point on the IS curve.only at the natural level of GDP.at any point on the LM curve.only at a point that is on both the IS and LMcurves.

Ans: A fixed exchange rate is referred to a system where the exchange rate is fixed by the…

Answered: a) A fixed exchange rate is preferable…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

See similar textbooks

Similar questions

do fast i will 5 upvotes.
Sub : EconomicsPls answer very fast.I ll upvote. Thank You
Indicate whether each view follows the traditional (neoclassical) view of money, banking, and capitalist economies, or the (post)Keynesian view. The level of investment depends most significantly on the - interest rate Money developed through rational, private actors in an - attempt to economize on transaction costs Money precedes production 1. Traditional (neoclassical) Loans create the money necessary to invest, and therefore to produce and generate an income to deposit into banks. (loans create deposits) 2. (Post) Keynesian The level of investment depends most significantly on - expectations ('animal spirits') Deposits into banks create the funds that get loaned out. - (deposits create loans) Production precedes money
Considering an economy with two labor markets – one for agricultural workers and one for manufacturing workers. Suppose there is a Dutch Disease which explains about a major market failure originated in the existence of cheap and abundant natural or human resources that keep overvalued the currency of a country for an undetermined period of time, thus turning non profitable the production of tradable goods using technology in the state-of-the-art. It is an obstacle to growth on the demand side, because it limits investment opportunities. Suppose initially that neither is unionized what will happen to these conditions? a) If manufacturing workers formed a union, what impact would you predict on the wages and employment in manufacturing? b) How would these changes in the manufacturing labor market affect the supply of labor in the market for agricultural workers? c) What would happen to the equilibrium wage and employment in this labor market?
help me understand rate on return
Need immediate help with Econ question! The Bank of International Settlements (BIS), a somewhat secretive organization based in Switzerland, recently touted the idea of a Central Bank Digital Currency (CBDC). The CBDC has been gaining popularity among the so-called global elite. To quote a New York Times article To keep their money relevant, many central banks are experimenting with digital versions of their currencies. These currencies are virtual, like Bitcoin; but unlike Bitcoin, which is a private enterprise, they are issued by the state and function much like traditional currencies. The idea is for central banks to introduce these digital currencies in limited circulation — to exist alongside cash as just another monetary option — and then to broaden their circulation over time, as they gain in popularity and cash fades away...A central-bank digital currency can [sic] be a useful policy tool. Typically, if the Federal Reserve wants to stimulate consumption and investment, it can…
The demand for money in the economy sometimes for the motive of transactions, speculation, and precaution. The macroeconomic balance in the presence of money is shown by the curve following. A. How do you read and understand the following curve? B. The relationship between the demand for money for transactions and the demand money for this speculation why the angle is 45°? In graph explain what happens when there are: A. monetary contraction! B. monetary expansion!
Imagine that in three successive years, 1990 to 1992, the CPI stood at 100, 105 and 110. This means that inflation showed a modest fall in 1992. Select one: O True OFalse
A) Why is inflation referred to as a tax on holding money?B)What is the federal funds rate?C) What problems does the FED encounter when trying to control the US money supply?
Discuss wether a fall in a country’s exchange rate will reduce a deficit on the current account of the balance of payments of the country. Use examples, please :)
7 The graph below depicts an economy where an increase in aggregate demand has caused inflation. Assume the government decides to conduct fiscal policy by changing taxes to bring inflation under control. Fiscal Policy 160 LRAS 150 AS 140 130 120 110 100 90 AD, 80 70 60 AD 50 40 80 160 240 320 400 480 560 640 720 800 Real GDP (billions of dollars) 7 of 14 Next > Mc Graw Hill < Prev Match Diacritics Whole Words Highlight All Match Case Tyne here to search Price Level
A positive demand shock creates a 5% GDP. What will be the long-run inflation rate? Intation Rate 4.25% 3.75% 3.25% 2.75% 2.25% 1.75% 1.25% 0.75% 0.25% LRAS SRAS AD 60 70 80 90 100 110 120 130 140 150 Culpul Index

SEE MORE QUESTIONS

Recommended textbooks for you

Understanding Business

Management

ISBN:

9781259929434

Author:

William Nickels

Publisher:

McGraw-Hill Education

Management (14th Edition)

Management

ISBN:

9780134527604

Author:

Stephen P. Robbins, Mary A. Coulter

Publisher:

PEARSON

Spreadsheet Modeling & Decision Analysis: A Pract…

Management

ISBN:

9781305947412

Author:

Cliff Ragsdale

Publisher:

Cengage Learning

Understanding Business

Management

ISBN:

9781259929434

Author:

William Nickels

Publisher:

McGraw-Hill Education

Management (14th Edition)

Management

ISBN:

9780134527604

Author:

Stephen P. Robbins, Mary A. Coulter

Publisher:

PEARSON

Spreadsheet Modeling & Decision Analysis: A Pract…

Management

ISBN:

9781305947412

Author:

Cliff Ragsdale

Publisher:

Cengage Learning

Management Information Systems: Managing The Digi…

Management

ISBN:

9780135191798

Author:

Kenneth C. Laudon, Jane P. Laudon

Publisher:

PEARSON

Business Essentials (12th Edition) (What's New in…

Management

ISBN:

9780134728391

Author:

Ronald J. Ebert, Ricky W. Griffin

Publisher:

PEARSON

Fundamentals of Management (10th Edition)

Management

ISBN:

9780134237473

Author:

Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo

Publisher:

PEARSON

SEE MORE TEXTBOOKS