If Japan seeks to control its exchange rates so that ¥100 = $1, which of the following policies should it NOT maintain?
a. interest rates that provide the same return as alternative international rates
b. a stable rate of price level changes that will not cause currency depreciation or appreciation
c. a willingness to raise interest rates when its currency begins to depreciate
d. a willingness to raise price levels
Ans: d. a willingness to raise price levels
You might also like to view...
If portable disk players made in China are imported into the United States, the Chinese manufacturer is paid with
A) dollars. B) yuan, the Chinese currency. C) international monetary credits. D) euros, or any other third currency.
Selling tickets to graduation ceremonies has long been a tradition among students at institutions that limit the number of guests. Suppose your classmate, Heidi, purchased two tickets for $40 each. Is this transaction economically efficient?
A) Yes, it is efficient only from the perspective of the seller and not from the perspective of the buyer. B) Yes, it was a voluntary exchange that benefited both parties. C) No, people should never be allowed to sell items they received for free. D) No, Heidi paid too much for the tickets.