A. it allows countries to exploit their comparative advantage, more fully
B. firm could more readily exploit
C. economies of scal
D. it intensified competition
E. it is easier to book holidays in member countries
0
In the ERM, each country fixed participant Collectively the group ________ against the rest of the world?
0
If one country, with floating exchange rates, has higher inflation than its competitors we would expect its exchange rate to ?
A. a nominal exchange rate, floated
B. a real exchange rate, pegged
C. a purchasing power parity, pegged
D. a real exchange rate, floated
0
Under floating exchange rates, expectations of higher interest rates are likely to cause an ____ of the exchange rate?
A. appreciate
B. depreciate
C. revalue
D. be in short supply
0
A fixed exchange rate, plus perfect capital mobility ________ the scope for monetary policy ?
A. depreciation
B. appreciation
C. fall
D. devaluation
0
With fixed exchange rates and no private currency flows, when the central bank buys domestic currency the domestic money supply is ?
A. enhances
B. undermines
C. encourages
D. facilitates
0
perfect international capital mobility suggests that international funds will be responsive to ________ differentials?
A. increased
B. unaffected
C. reduced
D. None of these
0
A rise in the real exchange rate will ________ the competitiveness of the domestic economy?
A. current account
B. interest rate
C. tax
D. price
0
A current account deficit means that a country may ?
A. increase
B. reduce
C. do nothing to
D. None of the above