Since 1973 "dirty floats" have been required because
A) PPP has not held.
B) high inflation countries have stronger currencies than countries with low inflation.
C) countries are not cooperating as much as original theorists predicted.
D) in the short run, monetary and fiscal policy only affects the autonomous home economy.
E) countries with a floating exchange rate have laissez-faire economies.
A
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If Pete raises his price of muffins from $2 to $3 and his sales revenue increases from $35,000 to $38,000 . then:
a. the demand for Pete's muffins in this range is price elastic. b. the demand for Pete's muffins in this range is price inelastic. c. the demand for Pete's muffins in this range is unit elastic. d. the percentage change in quantity demanded must exceed the percentage change in product price. e. this is impossible since this would violate the law of demand.