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3 years ago

The architects of the bretton woods agreement built limited flexibility into the fixed exchange rate system in order to:

1 answer:

7 0

To correct avoid high unemployment, one of the measures done by the architects of Bretton woods is to agree on building a limited flexibility into the fixed exchange rate system. In addition, it was stated in the argument that the rules and regulations of the monetary management between the U.S., Canada, Western Europe, Australia, and Japan must be systematically established.

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In economics there are positive statements and normative statements. The following is an example of a normative statement: "Stud

NeX [460]

Answer:

The question?

Explanation:

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3 years ago

Which of the following statements are true about both monopolistic competition and monopolies? Check all that apply. Firms earn

Dennis_Churaev [7]

Answer:

Firms earn zero profit in the long run

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2 years ago

Suppose that the public holds 50% of the money supply in currency and the reserve requirement is 20%. Banks hold no excess reser

Mice21 [21]

Answer:

the required reserves will increase by 1,200 dollars

Explanation:

the required reserve ratio is 20%

for each dollar the bank receive in deposit it can loan up to 80% and must keep 20%

the multiplier will be: 1 / 0.2 = 5

each dollar of deposit will increase the money supply by 5

and each dollar withdraw will decrease money supply by 5

Therefore, for this deposit of 6,000 dollars the bank will kept:

$6,000 x 20% = $1,200

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2 years ago

A country's overall level of interest rates should have an impact on the financial account of the BOP. Relatively low real inte

Genrish500 [490]

Answer:

Explanation:

Yes! the given statement is <em>very true</em>, because as we know that all the level of a nation's rate of interest has an influence on the BOP ( generally known as Balance Of Payments ) financial account, and also relatively low real interest rates are generally encouraged.

An outflow of funds are been pursued at a higher interest rates in an another nation's currency as well.

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2 years ago

"Holly, Inc. is a U.S.-based MNC contemplating the acquisition of a Thai firm which will be used to produce computers that will

olga55 [171]

Answer:

Holly; more

Explanation:

In this secanrio we have two firm Holly Inc and Molly inc. Holly inc is interested in acquiring a company in Thailand that produces computers and sells them within Thailand.

Molly Inc on the other hand wants to acquire a Thailand company that will produce computers and export them.

Holly Inc is more sensitive to the economic conditions of Thailand because they want to contribute to the country's GDP and growth by selling computers in Thailand.

Molly Inc however is using Thailand for its production and exporting the computers. It does not contribute to the Thailand economy.

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3 years ago