In the Context of Monetary Barriers, Blockage Is Ideally Accomplished

question 103

Multiple Choice

In the context of monetary barriers, blockage is ideally accomplished when

• A) a country refuses to allow an importer to exchange its national currency for the country's currency.
• B) two countries enter into a voluntary agreement to determine the value of their currencies.
• C) a country applies a specific unit or dollar limit to a particular type of good.
• D) money dealers limit the rate at which foreign currencies are exchanged.
• E) the government of a country imposes a mandatory tax on goods entering at its borders.

Understand the impact of high inflation rates and the costs and benefits of reducing inflation.

Assess the effect of taxes on savings and investments over the long term.

Analyze the main arguments in favor of and against economic stabilization policies.

Understand the various costs associated with inflation.