Costs that have already been incurred, and which cannot be recovered, are known as

Nominal anchors limit overshooting by:

a. fixing exchange rates. b. distinguishing between permanent and temporary changes. c. slowing down expectations formation. d. limiting temporary changes to exchange rates.

Since 1973 "dirty floats" have been required because

A) PPP has not held. B) high inflation countries have stronger currencies than countries with low inflation. C) countries are not cooperating as much as original theorists predicted. D) in the short run, monetary and fiscal policy only affects the autonomous home economy. E) countries with a floating exchange rate have laissez-faire economies.