Problem
1. What are the different systems for fixing the exchange rate? Describe how each works.
2. Describe the role of the International Monetary Fund.
3. In the model constructed in this chapter, what are the effects on the domestic economy of an increase in the foreign price level under a flexible exchange rate and under a fixed exchange rate?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.