If Capital Flows Freely Between Countries and a Country Has

question 111

Multiple Choice

If capital flows freely between countries and a country has a fixed exchange rate, one thing you know is that the country:

• A) exports more than it imports.
• B) must have ample gold reserves.
• C) cannot have a discretionary monetary policy.
• D) must be running large trade deficits

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Definitions:

United States

A country in North America consisting of 50 states and a federal district, known for its large size and diverse population.

DRD4 Gene

A gene that is believed to be associated with dopamine regulation in the brain, and has been linked to behaviors such as novelty-seeking.

Collectivistic Cultures

Societies that prioritize the needs and goals of the group over the needs of any individual within it, emphasizing community, cooperation, and strong social bonds.

Genetic Differences

Variations in genes among individuals or populations, which contribute to the biological diversity of organisms, including humans.