Thursday
July 31, 2014

Homework Help: Economics

Posted by CLA on Sunday, March 27, 2011 at 10:10am.

“Many countries peg their own currencies to the greenback; these countries import U.S. inflation when the Fed makes a mistake.” Why would these countries “import” inflation.



A. this is incorrect because countries only import goods or services


B. this is correct because a fixed exchange rate means that your country must experience the inflation of the country to which your exchange rate is fixed


C. this is incorrect because inflation is determined by your country’s own money growth rate


D. this is correct because higher inflation in the U.S. will increase your imports and decrease your exports, creating a balance of payments deficit and so inflation

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

imports and exports - which countries import what stuff too canada.which ...
investment - Would you expect the required rate rate of returns for a U.S ...
eco - Most countries, including the United States, import substantial amounts of...
for SraJMcGin (french) - Last time you said you would give me a list of ...
English - Hello. Please tell me if the sentence structures are natural: 1)The ...
Global Issues (ms.sue) - It is a known fact that all though there are some ...
Economics - Foreign aid from developed countries to underdeveloped countries is ...
Economics - One key development in the last two years has been the addition of ...
International Trade-Economics - The demand and supply curves for an import-...
social economics politics - debate the following proposition: "the countries of ...

Search
Members