Under the EMS System,the Burden of Maintaining Fixed Exchange Rates

question 10

Multiple Choice

Under the EMS system,the burden of maintaining fixed exchange rates fell principally upon

• A) countries with high inflation.
• B) countries with low inflation.
• C) counties with budget surpluses.
• D) countries with low interest rates.
• E) countries with low tax rates.

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Definitions:

Cartel Breakdown

The disintegration or failure of a cartel, which is an agreement among competing firms to control prices or exclude entry of a new competitor in the market.

Total Output

The total volume of goods and services produced by an economy over a specific period of time, also known as Gross Domestic Product (GDP).

Accommodation

Adjustments or modifications made to the work environment or job responsibilities to suit the needs of employees, often related to disability or religion.

Conflict Management

The practice of identifying and handling conflicts in a sensible, fair, and efficient manner.