The Main Difficulty with a Fixed or Pegged Exchange Rate

question 1

Multiple Choice

The main difficulty with a fixed or pegged exchange rate regime is that the:

• A)government finds it difficult to conduct fiscal policy as it cannot always be certain of the central bank's intervention in foreign exchange markets.
• B)central bank must always sterilise foreign exchange market interventions.
• C)central bank loses the power to conduct independent domestic monetary policy.
• D)central bank will run out of official reserves of foreign exchange.

Identify scenarios where discrimination might persist despite competitive market pressures.

Understand how consumer preferences can influence market outcomes related to discrimination.

Analyze the role of human capital in explaining wage differences.

Recognize the difference between labor-market discrimination and pre-labor market discrimination.

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Definitions:

Natural Disaster

Severe, catastrophic events resulting from natural processes of the Earth, such as earthquakes, floods, hurricanes, and volcanic eruptions.

Punished

The administration of a negative consequence or removal of a positive stimulus following an undesired behavior, with the intention of decreasing that behavior's occurrence in the future.

Transgender Man

An individual whose gender identity is male but was assigned a different sex at birth.

Harassment

Aggressive pressure or intimidation towards someone, often in the workplace or social settings, which can be based on factors like gender, race, or sexual orientation.