Which of the Following Is/are INCORRECT? an Argument Against Floating

question 140

Multiple Choice

Which of the following is/are INCORRECT? An argument against floating exchange rates is that

• A) a fixed rate automatically prevents instability in the domestic money market from affecting the economy if shocks come from home domestic money market.
• B) a fixed rate might become unpredictable, complicating economic planning.
• C) a rise in money demand under a fixed exchange rate would have no effect on the exchange rate and output.
• D) a fixed rate functions within the price-specie-flow mechanism and maintains a balance of payments equilibrium,
• E) a fixed rate automatically prevents instability in the economy from output market shocks.

Recognize the benefits of comparative advantage and the role it plays in international trade.

Describe the consequences of trade restrictions on consumer choice and market variety.

Understand the relationship between trade policies and consumer prices.

Analyze the effects of trade policies on government revenue.

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Definitions:

Monogamy

A form of relationship in which an individual has only one partner during their lifetime or at any one time.

Homophobia

The fear, hatred, discomfort with, or mistrust of people who are gay, lesbian, bisexual, or transgender.

Group Marriages

A type of marriage in which more than two people form a familial unit, sharing responsibilities, duties, and intimate relations.

Biphobic Marginalization

The exclusion or discrimination against individuals who are bisexual, stemming from stereotypes or negative attitudes towards bisexuality.