Log in
Economics
1
answer
0
watching
133
views

The proponents of fixed exchange rates argue that flexible exchange rates will? 
 
a)hamper international trade because of uncertainty over what the exchange rate will be.
b)force a nation to use its domestic macroeconomic policies to maintain an exchange rate.
c)lead to trade protectionism.
d)a and b

Watch
1
answer
0
watching
133
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Vaishnavi Kanukurti
Vaishnavi KanukurtiLv10
25 Nov 2020

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

A floating exchange rate:

I.   Leaves the monetary policy available for domestic stabilization.
II.  Is less expensive to maintain than a fixed exchange rate.
III. Adds uncertainty to international trade.

 

a. I only. 

b. III only. 

c. I, II and III. 

d. II only. 

Question 7

(a) “A floating exchange rate can insulate a country from foreign trade disturbances, while a fixed exchange rate can insulate a country from internal monetary disturbances.” Explain. (4 marks)

(b) “If an economy is experiencing a tendency towards a Balance of Payments deficit its real exchange rate will have to increase”. Compare and contrast the way that this is brought about under a fixed and a flexible exchange rate regime. (4 marks)

(c) Why could a system of flexible exchange rates be inflationary? (2 marks)

Question 1 What factors determine the demand for British pounds in foreign exchange markets? How are exchange rates determined under a flexible exchange rate system?

Question 2 Why can't all the balance of payments accounts be in surplus?

Question 3 How can tariffs protect U.S. jobs? Do tariffs lead to a net increase in jobs? Explain. Who are the winners and losers from trade restrictions? Given that trade restrictions impose losses on an economy, why are trade restrictions so common?

Question 4 Describe developing countries and how they differ from industrial market economies. How can international trade aid development? In what ways does the international economy impose problems on developing countries?

Question 5 How can two countries both be better off as a result of trade?

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in