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Unformatted text preview: its balance of payments is forced to: a. Buy foreign exchange b. Sell foreign exchange c. Increase its rate of economic growth d. Reduce taxes 5. The gold standard: a. Was a simple mechanism for changing rates between countries: b. Is the current system of international finance c. Prevented countries from controlling their domestic price levels d. Led to inflation when imports increased 6. Under the current system of floating exchange rates, speculation in currency markets: a. Has virtually disappeared b. Had destabilized exchange rate fluctuations c. Has stabilized exchange rate fluctuations d. Hs been conducted primarily by IMF 7. Since 1980s, the exchange rate of the U.S. dollar has: a. Been remarkably constant b. Both risen sharply and fallen sharply c. Fallen consistently d. Risen consistently...
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