In a Fixed Exchange Rate System

question 81

Multiple Choice

In a fixed exchange rate system,

• A)Excess demand for a currency is eliminated by using foreign exchange reserves to increase demand.
• B)A country can eliminate a surplus of its currency by eliminating its protectionist barriers to trade.
• C)The capital account surpluses must offset current account deficits.
• D)A balance-of-payments deficit can be corrected by expansionary fiscal and expansionary monetary policies.

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Definitions:

Relationship Failure

Relationship Failure describes unsuccessful romantic relationships that end due to various reasons such as incompatibility, conflict, or loss of interest.

Four Horsemen

A term coined by psychologist John Gottman to describe the four communication behaviors (criticism, contempt, defensiveness, and stonewalling) that predict the end of a relationship.

Contempt

A feeling of disdain or dismissive scorn for someone or something considered inferior or worthless.

Gottman

Refers to John Gottman, a researcher known for his work on marital stability, relationship analysis, and the predictors of divorce.