A debt crisis may lead to a banking crisis

In the short run, the chain of causality between monetary policy and the exchange rate under fixed rates differs from a floating rate. How?

a. In a fixed rate regime, the money supply is determined first, then interest rates, then the short-run exchange rate. b. In a fixed rate regime, interest rates are determined first, then the money supply, and then the short-run exchange rate. c. In a floating rate regime, exchange rates are determined first, then the nominal interest rate (according to uncovered interest parity), and then the money supply. d. In a fixed rate regime, exchange rates are determined first, then the nominal interest rate (according to uncovered interest parity), and then the money supply.

A country with a real GDP per person similar to real GDP per person in the United States but with limited political freedom is generally considered to have

A) a lower standard of living than the United States. B) a larger Human Development Index because the other country still needs to develop more political freedom. C) the same standard of living as the United States. D) an understated GDP. E) an overstated nominal GDP.