If a Country Has a Fixed Exchange Rate

question 156

Multiple Choice

If a country has a fixed exchange rate

• A)the equilibrium exchange rate in that market does not respond to changes in supply and demand for currency.
• B)central banks have more control over real GDP in the economy.
• C)central banks must buy and sell their holdings of currencies to maintain a given exchange rate.
• D)the exchange rate is allowed to fluctuate in response to changes in the supply and demand for currency.

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Definitions:

Stacks

A data structure that operates on the Last In, First Out (LIFO) principle, where the last item added is the first to be removed.

Function Calls

The process of invoking a function in a program, which includes passing control and arguments (if any) to the defined function.

Stack Pointer

A register or memory location that points to the top of the stack, used to keep track of the call stack in computer programs.

First Structure

The initial framework or arrangement of components in a system or program.