Exchange-rate targeting allows a central bank to ________, thus this will ________ the probability of policy developing a time-inconsistency problem
A) be governed by a policy rule; decrease
B) follow discretionary policy; decrease
C) be governed by a policy rule; increase
D) follow discretionary policy; increase
A
You might also like to view...
The risk premium on corporate bonds reflects the fact that corporate bonds have a higher default risk and are ________ U.S. Treasury bonds
A) less liquid than B) less speculative than C) tax-exempt unlike D) lower-yielding than
Minimum-wage laws affect all workers
a. True b. False Indicate whether the statement is true or false
If personal taxes were decreased and resource productivity increased simultaneously, the equilibrium ________.
A. price level would necessarily rise B. price level would necessarily fall C. output would necessarily fall D. output would necessarily rise
The government corrects for externalities in all of the following ways EXCEPT
A. regulation. B. taxes. C. subsidies. D. lobbying.