The longer and more unpredictable that the policy lags are, the stronger the case for active stabilization policy

One of the reasons the pound depreciated in 1992 was:

A) because Britain was running out of stock of foreign currency reserves. B) because Britain started exporting more than it imported C) because Britain started importing more than it exported. D) because speculative trading had decreased in foreign exchange markets.

If a student achieves a high SAT score, this

A) sends a signal to a college that the applicant will be a good college student. B) does not act as a screening device. C) is a moral hazard. D) provides a college with no information.