Which of the following is NOT an advantage to exchange-rate targeting?
A) It provides a strong nominal anchor to keep inflation under control.
B) It provides an automatic rule for policy to help avoid the time-inconsistency problem.
C) It is simple and clear so that the public can easily understand it.
D) It increases the accountability of policymakers.
D
You might also like to view...
Under oligopoly, there are ________ firms selling products that are ________
A) many; either identical or different B) a few; either identical or different C) many; different D) a few; identical
Suppose both the equilibrium price and quantity rise for a particular product. Which of the following best explains this situation?
a. Supply and demand simultaneously increased and the shift in supply was greater than the shift in demand. b. Supply and demand simultaneously increased and the shift in supply was less than the shift in demand. c. Supply and demand simultaneously decreased and the shift in supply was greater than the shift in demand. d. Supply and demand simultaneously decreased and the shift in supply was less than the shift in demand.
Which of the following is not a typical customer in the wholesale market for foreign exchange?
a. A central bank b. A tourist c. A large company d. The government e. A supranational agency
Which of the following is true of the OLS t statistics?
A. The heteroskedasticity-robust t statistics are justified only if the sample size is large. B. The heteroskedasticty-robust t statistics are justified only if the sample size is small. C. The usual t statistics do not have exact t distributions if the sample size is large. D. In the presence of homoskedasticity, the usual t statistics do not have exact t distributions if the sample size is small.