In a fixed exchange rate system, the center country, to whose currency the other countries peg their exchange rate, will:
A) find it difficult to conduct autonomous monetary policy.
B) find it difficult to conduct autonomous fiscal policy.
C) easily implement monetary and fiscal policy to suit its economy.
D) defer to advice from other countries in conducting its domestic policy.
Ans: C) easily implement monetary and fiscal policy to suit its economy.
You might also like to view...
Labor productivity is
a. real GDP per hour of labor times the number of people. b. real GDP per hour of labor. c. real GDP per hour of labor times the hours of work. d. the rate of change in real GDP per hour of labor.
Some modern theories of consumer behavior have:
A) emphasized that consumption is basically an instantaneous act. B) contended that in the MUx/Px = MUy/Py equation MU is understated for time-intensive goods. C) introduced the opportunity cost of time as a component of product price. D) argued that inflationary expectations negate the theory of consumer behavior.