Author Question: Imperfect policy credibility implies that A) traders may not believe that a central bank will do ... (Read 113 times)

big1devin · **on:** Jun 30, 2018

Imperfect policy credibility implies that

A) traders may not believe that a central bank will do what it says.
B) a central bank may intentionally undermine its policies.
C) central bank authorities cannot be trusted.
D) currency traders will often try to undermine central bank movements.

Question 2

The target zone model of exchange rates requires adjustment for

A) imperfect policy credibility and intra-marginal adjustments.
B) imperfect policy credibility.
C) speculative pressure and intra-marginal adjustments.
D) speculative pressure.