Which One of the Following Statements Is True

question 77

Multiple Choice

Which one of the following statements is true?

• A) A fixed exchange rate automatically cushions the economy's output and employment by allowing an immediate change in the relative price of domestic and foreign goods.
• B) A flexible exchange rate does not automatically cushions the economy's output and employment by allowing an immediate change in the relative price of domestic and foreign goods.
• C) A flexible exchange rate automatically cushions the economy's output and employment by allowing an immediate change in the relative price of domestic and foreign goods.
• D) A flexible exchange rate automatically cushions the economy's output and employment by allowing an immediate change in the absolute price of domestic and foreign goods.
• E) A fixed exchange rate automatically cushions the economy's output and employment by allowing an immediate change in the absolute price of domestic and foreign goods.

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Definitions:

Planners

Individuals or tools engaged in the process of outlining strategies or actions for future activities.

Americans

Residents or citizens of the United States of America.

Old Age

The latter stage of human life, typically considered to begin at the retirement age of 65.

Forge Stronger Links

Refers to the process of developing and strengthening relationships or connections, whether interpersonal, social, or professional.