An expansionary monetary policy, all else equal, will:
A) depreciate the domestic currency.
B) appreciate the domestic currency.
C) all of the above.
D) none of the above.
A
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Hong Kong is an example of an economy that
A) does not experience economic growth because it is not a democracy. B) experiences economic growth in spite of the fact that is lacks democratic freedom. C) grows more slowly than other Asian countries because property rights are not valued. D) needs to promote investment so that economic growth can occur. E) lacks economic freedom and therefore experiences the slowest economic growth of all developed economies.
An advantage to exchange-rate targeting is it helps keep inflation under control by tying the inflation rate for ________ traded goods to what is found in the ________ country
A) domestically; anchor B) domestically, domestic C) internationally; anchor D) internationally; domestic