A fixed exchange rate policy:
A. imports monetary policy.
B. strengthens domestic interest rate policy.
C. will likely make domestic inflation more volatile.
D. decreases central bank policy accountability and transparency.
Answer: A
Economics
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With normally-sloped IS and LM curves, an increase in government expenditure ________ consumption expenditure since autonomous consumption ________ while induced consumption ________
A) can raise or lower, falls, rises B) can raise or lower, rises, falls C) must decrease, falls, also falls D) must decrease, rises, falls E) must increase, rises, also rises
Economics
Contractual inflexibility is most likely to slow price adjustment in the
A) money market. B) capital market. C) real estate market. D) labor market.
Economics