The United States chooses to have ________ and ________ and therefore, cannot have a fixed exchange rate at the same time
A) capital control; an independent monetary policy
B) free capital mobility; an independent monetary policy
C) free capital mobility; no control of monetary policy
D) capital control; no control of monetary policy
B
You might also like to view...
If new firms enter a monopolistically competitive market, the demand curves for the existing firms will shift to the
A. Right, and there will be no change in price elasticity. B. Left and become more price-inelastic. C. Left and become more price-elastic. D. Left, and there will be no change in price elasticity.
The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
The main redistribution effect of a tariff is the transfer of income from
A) domestic producers to domestic buyers. B) domestic buyers to domestic producers. C) domestic producers to domestic government. D) domestic government to domestic consumers. E) foreign producers to domestic consumers.
A decrease in the foreign real interest rate will tend to cause, other things the same ________
A) a decrease in the return on dollar assets relative to foreign assets B) an increase in the demand for dollars C) a depreciation of the domestic currency D) individuals to hold fewer dollar assets