Critics of Floating Exchange Rates Question the Closeness of the Link

question 66

Multiple Choice

Critics of floating exchange rates question the closeness of the link between the exchange rate and the trade balance.They claim trade deficits are determined by the:

• A)balance between savings and investment in a country.
• B)external value of the currency of a country.
• C)expansionist monetary policies adopted by a country.
• D)extent of government control of industries in a country.

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Definitions:

Piecework

A type of incentive system that compensates workers for each unit of output.

Individual Incentive Plans

Compensation strategies designed to reward employees based on their individual performance and achievements.

Commissions

Earnings based on a percentage of the sales made by an employee or agent, as a form of incentive pay.

Pay Equity

The principle of offering equal pay for work of equal value, aiming to eliminate wage discrimination based on gender or other unrelated factors.