Under Fixed Exchange Rate, the Response of an Economy to a Temporary

question 126

Multiple Choice

Under fixed exchange rate, the response of an economy to a temporary fall in foreign demand for its exports is

• A) the currency appreciates, and output falls.
• B) the currency depreciates, and output falls.
• C) the currency remains the same, and output decreases.
• D) the currency depreciates, and output remains constant.
• E) the currency appreciates, and output remains the same.

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Definitions:

Opposition

Resistance or dissent in face of an idea, plan, or entity, often leading to conflict or debate.

Disputes

Conflicts or disagreements that arise between parties who have opposing views or interests.

Intrasender Conflict

A type of conflict that occurs when a person receives conflicting messages or expectations from the same sender.

Intersender Conflict

A type of conflict that arises when a person receives conflicting messages from different sources or senders in the organizational communication process.