Crawling pegs
A) are anti-inflationary because they require monetary discipline.
B) are designed to stabilize real exchange rates when domestic inflation is less than inflation in other nations.
C) reduce a nation's vulnerability to financial crises.
D) lead to undervaluation of the domestic currency.
A
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When an economy experiences a recession there is
A) a rightward shift of the short-run Phillips curve. B) a leftward shift of the short-run Phillips curve. C) no change in the short-run Phillips curve. D) a downward movement along the short-run Phillips curve. E) an upward movement along the short-run Phillips curve.
Because of automatic stabilizers, in recessions the government budget deficit ________, while in expansions the deficit ________
A) falls; rises B) falls; falls C) rises; falls D) rises; rises