If Most of the Shocks That Buffet the Economy Come

question 39

Multiple Choice

If most of the shocks that buffet the economy come from the output market shocks, then

• A) fixed exchange rates are better than flexible exchange rates.
• B) flexible exchange rates are better than fixed exchange rates.
• C) which system is chosen is not important.
• D) fixed exchange rates are better than flexible exchange rates only in the short run.
• E) flexible exchange rates are better than fixed exchange rates only in the short-run.

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Definitions:

Spontaneous

Occurring without apparent external cause, prompt, or planning.

Technology

The use of scientific understanding for real-world applications, particularly in the fields of industry and daily activities.

Flash Mob

A large group of people who assemble suddenly in a public place, perform an unusual act for a brief time, then quickly disperse, often organized via telecommunications or social media.

Conglomeration

The process or result of forming a large company or group of companies by merging multiple small ones, often across various industries.