Under Which System Does a Nation Not Concern Itself with External

question 19

Multiple Choice

Under which system does a nation not concern itself with external balance?

• A)flexible exchange rate system
• B)fixed exchange rate system
• C)managed peg
• D)gold standard

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Definitions:

Apples

A sweet, edible fruit produced by an apple tree, typically round in shape and available in many varieties.

Quasi-Rents

Earnings generated from a leased asset over and above the economic cost of utilizing the asset, often temporary due to market circumstances.

Production Functions

Mathematical equations that describe the relationship between input and output quantities in the production process.

Labor

The investment of human strength and thought in the process of producing goods and services.