Fixed Exchange Rates Are Often Maintained by Using All of the Following

question 70

Multiple Choice

Fixed exchange rates are often maintained by using all of the following except:

• A) Open speculation by individual traders in foreign currency markets
• B) International monetary reserves held by central banks
• C) Controls on imports and exports such as tariffs and quotas
• D) Domestic macroeconomic adjustments using monetary and fiscal policies

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Definitions:

Wage Rate

The wage rate is the amount of money earned per unit of time, such as an hour, by an employee.

Repair People

Individuals or workers specialized in fixing and maintaining machinery, equipment, or facilities.

Marginal Revenue Product

The additional revenue generated from using one more unit of a factor of production or input.

Mechanics

The branch of physics that deals with the behavior of physical bodies when subjected to forces or displacements and the subsequent effects of the bodies on their environment.