Under a Floating Exchange Rate Regime with a Low Degree

question 52

Multiple Choice

Under a floating exchange rate regime with a low degree of capital mobility, an expansionary fiscal policy will most likely create pressure on:

• A)monetary authorities to revalue the domestic currency.
• B)the domestic currency to depreciate.
• C)the domestic currency to appreciate.
• D)monetary authorities to devalue the domestic currency.

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Definitions:

Intellectual Capital

The intangible value of an organization, including the skills, knowledge, experience, and relationships of its employees.

Knowledge Resources

The information, expertise, and skills that individuals or organizations possess, which can be leveraged to make decisions, solve problems, and create value.

Information Technology

The employment of computers, storage systems, networking, and additional physical hardware, infrastructure, and methods for the generation, processing, storage, security, and transfer of all types of electronic data.

Computer Hardware

The physical components of a computer system, including the central processing unit, monitor, keyboard, and mouse.