Under purely flexible exchange rates,
A) there is no intervention by the domestic fiscal or monetary authorities to specifically target the nominal exchange rate.
B) there is only occasional intervention by the domestic fiscal or monetary authorities to specifically target the nominal exchange rate.
C) the domestic fiscal and monetary authorities retain considerable flexibility to prevent short-run variability in the nominal exchange rate.
D) the domestic fiscal and monetary authorities retain considerable flexibility to prevent long-run variability in the nominal exchange rate.
A
You might also like to view...
The period of time in which the level of output moves from a trough to a peak is called a
A) contraction or recession. B) recovery or expansion. C) plateau. D) depression.
When economists use the term "money" they just mean anything that has value to the public.
a. true b. false