In Canada,proponents of a Flexible Exchange Rate Argue That the Flexible

question 151

Multiple Choice

In Canada,proponents of a flexible exchange rate argue that the flexible exchange rate acts as a "shock absorber." By this,they mean that

• A)negative shocks to the Canadian economy will be fully absorbed by a depreciation of the dollar,causing net exports to rise.
• B)a flexible exchange rate protects Canadian exporters from increases in the prices of their products in the rest of the world.
• C)flexible exchange rates allow for more certainty with regard to the profitability of international transactions,which dampens negative effects on output and employment.
• D)external shocks to the Canadian economy can be partially absorbed by fluctuations in the exchange rate,which dampen the effect of the shock on output and employment.
• E)positive shocks to the Canadian economy will be fully absorbed by an appreciation of the dollar,causing net exports to fall.

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Definitions:

Management by Objectives

A management strategy in which employees set goals that align with the organization's objectives, improving performance and motivation.

Manager-Employee Interactions

The dynamics and communications that take place between managers and their employees in the workplace.

Core Time

Defined periods during the working day when employees are required to be at work, facilitating a common schedule for collaboration while allowing some flexibility.

Flex-Time System

An employment schedule that allows workers to alter their start and end times, offering flexibility to accommodate personal needs and preferences.