Currency stabilization policy is:

A. successful only if the government can identify the long-run equilibrium value of the exchange rate.
B. successful only if the government does not attempt to affect market expectations.
C. never successful.
D. always successful.


Answer: A

Economics

You might also like to view...

In the short run, monopolistically competitive firms:

A. can earn positive economic profits by acting like a monopolist. B. will earn zero economic profits by acting like a monopolist. C. can earn positive economic profits by acting like a perfectly competitive firm. D. will earn zero economic profits by acting like a perfectly competitive firm.

Economics

Why do people specialize?

A) Specialization allows people to do a variety of job tasks. B) Specialization usually increases productivity. C) Specialization decreases people's dependence on each other. D) Specialization occurs when people do not want to learn new tasks.

Economics

If the Fed fears inflation, it ________ by ________ government securities

A) decreases aggregate supply; selling B) decreases aggregate demand; selling C) increases aggregate supply; buying D) decreases aggregate supply; buying E) increases aggregate demand; selling

Economics

A small town in West Texas has one gas station. If the price of oil increases, the price of gas that the station charges will most likely a. increase

b. decrease. c. remains the same. d. may increase or decrease.

Economics