Predicting the impact of institutional change on the effectiveness of monetary policy is best done with a

Which of the following had prompted the Chinese authorities to stand ready to buy or sell dollars steadily and in large volume?

a. Huge current account deficit b. Currency pegged to the dollar c. Floating rate policy d. Adherence to the old gold standard

Which of the following factors explains why managers of government agencies (the public sector) have little incentive to operate efficiently?

a. It is relatively easy for voters to detect operational inefficiency in the public sector and do something to correct it. b. Public-sector managers face fierce competition. c. Public-sector managers have no fear of losses and bankruptcy when operational efficiency is not achieved. d. All of the above explain why government agencies have little incentive to be efficient.