Advocates of flexible exchange rates
Advocates of flexible exchange rates claim that under flexible exchange rates,A.no country would be forced to import only inflation fromB.no country would be forced to import only ...
Advocates of floating rates pointed out that
A.removal of the obligation to peg currency values would restore monetary control to centralB.imposing of the obligation to peg currency values would restore monetary control to ce...
Advocates of flexible exchange rates claim that
Advocates of flexible exchange rates claim that under flexible exchange rates, if the central bank faced unemploymentA.and thus wished to decrease its money supply, there would no ...
Advocates of flexible exchange rates claim
Advocates of flexible exchange rates claim that under flexible exchange rates, a currencyA.appreciation caused by increasing the money supply would reduce unemployment by lowering ...
flexible exchange rates, a currency
Advocates of flexible exchange rates claim that under flexible exchange rates, a currencyA.depreciation caused by increasing the money supply would reduce unemployment by lowering ...
lexible exchange rates, the central bank of
Advocates of flexible exchange rates claim that under flexible exchange rates, the central bank ofA.an overheated economy could cool down activity by increasing the money supply wi...
Under Bretton Woods,
A.any foreign country cannot devalue its currency against the dollar in conditions of “fundamental ”B.any foreign country could devalue its currency against the dollar in conditi...
The case against floating exchange rates is because of
A.discipline and destabilizing speculation and money marketB.injury to international trade andC.uncoordinated economicD.the illusion of greaterE.All of theAnswer: E
The Plaza Accord of 1985 announces that the
A.G-5 countries will intervene in the foreign exchange market to bring about a dollarB.G- 7 countries will intervene in the foreign exchange market to bring about a dollarC.G-5 cou...
Present the case for floating exchange rates.
Answer:Monetary policy autonomyGovernments would be able to use monetary policy to reach internal and external balance. No country would be forced to import inflation and deflation...
Present the case against floating exchange rates.
Answer:聽 聽 聽 聽 聽1.The discipline imposed on individual countries by a fixed rate would be lost.2.Destabilizing speculation and money market3.Injury to international trade and4...
“Under floating rates, the economy is more vulnerable
“Under floating rates, the economy is more vulnerable to shocks coming from the domestic money market.”Answer: The statement is true. Under floating rates, a rise in real domes...
