A country that joins an exchange rate area
A) gives up its ability to use the exchange rate for the purpose of stabilizing output and employment.
B) does not give up its ability to use the exchange rate and monetary policy for the purpose of stabilizing output and employment.
C) gives up its ability to use the exchange rate and monetary policy for the purpose of stabilizing output and employment.
D) gives up its ability to use only monetary policy for the purpose of stabilizing output and employment.
E) does not gives up its ability to use only monetary policy for the purpose of stabilizing output and employment.
C
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Demand is a schedule that shows
A) a set of possible prices for a good and the quantities of the good that will be purchased at each of those prices. B) how much income it takes to afford various quantities of a good. C) the relationship between the cost of producing a good and the price that sellers will charge. D) how population changes will affect the amount of a good that is needed.
Which of the following is a good example of efficient specialization and voluntary exchange?
a. A college professor hires someone to rototill a garden for spring planting. b. A college professor works on the engine of a car for a neighbor who is a mechanic. c. A lawyer decides to babysit his young child and agrees to do so for others for cash. d. A physician agrees to help a neighbor work on her income tax return in exchange for her bookkeeping services.
Game theory is
A. the study of how people behave in strategic situations. B. the collusion of a few powerful firms to create monopoly power. C. the act of price-fixing to share markets. D. the division of a market into non-competitive areas, creating regional monopolies.
Which of the following are financial intermediaries?
a. both banks and mutual funds b. banks but not mutual funds c. mutual funds but not banks d. neither banks or mutual funds