The target zone model of exchange rates requires adjustment for

A) imperfect policy credibility and intra-marginal adjustments.
B) imperfect policy credibility.
C) speculative pressure and intra-marginal adjustments.
D) speculative pressure.

A

Economics

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The view that decision-maker expectations are based on actual outcomes observed during the recent past is called the:

a. rational expectations hypothesis. b. adaptive expectations hypothesis. c. permanent income theory. d. recognition lag.

Economics

Refer to the diagram in which T is tax revenues and G is government expenditures. All figures are in billions. This diagram portrays the idea of:



A.  progressive taxation.
B.  built-in stability.
C.  the multiplier.
D.  discretionary fiscal policy.

Economics