Social Security retirement benefits are increased automatically each year at the rate of inflation

Changes in which of the following will cause a change in exchange rates?

A) real interest rates B) consumer preferences C) perceptions of economic and political stability D) all of the above

Advocates of "fixed policy rules" believe

A. That fine-tuning can improve macro outcomes. B. That the economy is better off using discretionary policy. C. In constant increases in the money supply and balanced federal budgets. D. That politicians can best determine when to stimulate and restrain the economy.