Which One of the Following Statements Is TRUE

question 8

Multiple Choice

Which one of the following statements is TRUE?

• A) A fixed exchange rate automatically cushions the economy's output and employment by allowing an immediate change in the relative price of domestic and foreign goods.
• B) A flexible exchange rate does not automatically cushion the economy's output and employment by allowing an immediate change in the relative price of domestic and foreign goods.
• C) A flexible exchange rate automatically cushions the economy's output and employment by allowing an immediate change in the relative price of domestic and foreign goods.
• D) A flexible exchange rate automatically cushions the economy's output and employment by allowing an immediate change in the absolute price of domestic and foreign goods.
• E) A fixed exchange rate automatically cushions the economy's output and employment by allowing an immediate change in the absolute price of domestic and foreign goods.

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Definitions:

Nucleophilic Acyl Substitution

A chemical reaction in which an acyl group on a molecule is replaced by a nucleophile, a process common in organic synthesis.

Carboxylic Acid

Organic compounds characterized by the presence of a carboxyl group (-COOH), with acidic properties, making them able to donate a hydrogen ion to solutions.

Butanenitrile

An organic molecule also known as butyronitrile, a nitrile derivative of butane.

Wavenumber

A unit of frequency used in spectroscopy, representing the number of waves per unit distance.