What is the exchange rate policy?

The exchange rate of an economy affects aggregate demand through its effect on export and import prices, and policy makers may exploit this connection. Deliberately altering exchange rates to influence the macro-economic environment may be regarded as a type of monetary policy.

When people behave recklessly because they know they will be saved if things go wrong it is known as a N?

The concept of moral hazard occurs when people behave recklessly because they know they will be saved if things go wrong.

What were the two alliances after WWII?

There were two major alliances during World War II: the Axis and the Allies. The three principal partners in the Axis alliance were Germany, Italy, and Japan.

What are three different exchange rate policies in effect today around the world?

An exchange rate regime is how a nation manages its currency in the foreign exchange market. An exchange rate regime is closely related to that country’s monetary policy. There are three basic types of exchange regimes: floating exchange, fixed exchange, and pegged float exchange.

What did the Soviets do between June 27 1948?

The Berlin Airlift was from June 27, 1948 to May 12, 1949, The Soviets tried to control Berlin by cutting traffic to West Berlin.

Which president established a policy that was named after him and that declared the US would help nation resist Communism?

President Harry S. Truman

What happened at the Elbe River in April 1945 quizlet?

What happened at the Elbe River in April of 1945? Two powerful armies met and soldiers from the Red Army of the Soviet Union reached out their hands to their American counterparts. The Soviet Union was communism and the U.S. was capitalism. You just studied 16 terms!

Which situation poses the greatest problem for international businesses in the long run?

Which situation poses the greatest problem for international businesses in the long run? higher domestic inflation rates compared to the inflation rate in the country to which the currency is pegged can make the currency noncompetitive.