If an economy wants to maintain monetary policy autonomy, then:
a. it can maintain a fixed exchange rate and international capital mobility.
b. it can impose strict capital controls and maintain a fixed exchange rate.
c. it can maintain capital mobility but not a fixed exchange rate.
d. it can impose strict capital controls and maintain a fixed exchange rate or it can maintain capital mobility but not a fixed exchange rate.
Ans: d. it can impose strict capital controls and maintain a fixed exchange rate or it can maintain capital mobility but not a fixed exchange rate.
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Price differentiation is a situation in which
A) there are different prices for similar products reflecting differences in the marginal cost of providing the commodities to different groups of buyers. B) there are different prices for the same product that are not due to differences in the marginal cost of providing the commodity to different groups of buyers. C) consumers' comparison-shop. D) the demand curve is vertical.
Show the short-run impact of the following factors on GDP using a graph of the aggregate goods and services market. Assume the economy was originally in long-run equilibrium
a. a stock market crash b. a decrease in the real interest rate c. a flood that destroys most agricultural crops d. a decrease in resource prices e. an increase in the labor force f. an increase in the expected inflation rate
Which of the following is most characteristic of developing nations?
A. A small percentage of the labor force in agriculture B. A relatively equitable distribution of income C. Low levels of labor productivity D. Low rates of population growth
Refer to the diagram. Which tax system has the least built-in stability?
A. T 4 .
B. T 3 .
C. T 2 .
D. T 1 .