Flexible exchange rates ________ of monetary policy to stabilize the economy and fixed exchange rates ________ of monetary policy to stabilize the economy.
A. strengthen the impact; strengthen the impact
B. offset the impact; reinforce the impact
C. strengthen the ability; prevent the use
D. prevent the use; strengthen the ability
Answer: C
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Goods and services bought domestically but produced in other countries are referred to as
A) transfer payments. B) exports. C) imports. D) foreign consumption.
If incomes are rising, in the market for a normal good,
a. its price will rise and the quantity exchanged will rise. b. its price will rise and the quantity exchanged will fall. c. its price will fall and the quantity exchanged will rise. d. its price will fall and the quantity exchanged will fall.
What would happen if money did not exist?
Suppose the economy is in long-run equilibrium at an inflation rate of 1% Then inflation expectations rise to 2% and inflation rises to 3%. The increase in expected inflation shifts the short-run Phillips curve
a. right. Overall, unemployment moves above its natural rate. b. right. Overall, unemployment moves below its natural rate. c. left. Overall, unemployment moves above its natural rate. d. left. Overall, unemployment moves below its natural rate.