In a fixed exchange rate system,
A) Excess demand for a currency is eliminated by using foreign exchange reserves to increase demand.
B) A country can eliminate a surplus of its currency by eliminating its protectionist barriers to trade.
C) The capital account surpluses must offset current account deficits.
D) A balance-of-payments deficit can be corrected by expansionary fiscal and expansionary monetary policies.
Correct Answer:
Verified
Q91: Foreign exchange reserves are
A)Held illegally by many
Q92: Ceteris paribus,with a fixed exchange rate,if Americans
Q93: Ceteris paribus,if Canadians decide they want to
Q94: An excess demand for foreign currency at
Q95: A major problem with countries setting fixed
Q97: Suppose the U.S.dollar is defined by law
Q98: The inflow of foreign investment into the
Q99: Because of the United States' long-standing trade
Q100: Ceteris paribus,if Americans decide they want to
Q101: A "dirty float" is a system
A)Of fixed
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