In Monetarist theory, the role of the government should be to: ...

[jrubin]

In Monetarist theory, the role of the government should be to:
 a. Control prices.
  b. Seek to raise productivity by setting up and enforcing fair rules of behavior, encouraging competitive markets, imposing reasonable taxes, and creating stable and predictable political environments.
  c. Do everything in its power to promote exports.
  d. All of the above.
  e. None of the above.

Question 2

The spot exchange rate is equal to the forward exchange rate:
 a. When the central bank chooses to equalize both rates.
  b. When the interest rates of the two countries are not expected to change.
  c. When the difference between the interest rates of the two countries are expected to remain constant.
  d. When the nominal interest rates of the two countries are equal.
  e. When the interest rate of at least one of the two countries equals the spot exchange rate.

[shewald78]

Answer to Question 1

.B

Answer to Question 2

.D