This topic contains a solution. Click here to go to the answer

Author Question: A country that joins an exchange rate area A) gives up its ability to use the exchange rate for ... (Read 169 times)

DelorasTo

  • Hero Member
  • *****
  • Posts: 548
A country that joins an exchange rate area
 
  A) gives up its ability to use the exchange rate for the purpose of stabilizing output and employment.
  B) does not give up its ability to use the exchange rate and monetary policy for the purpose of stabilizing output and employment.
  C) gives up its ability to use the exchange rate and monetary policy for the purpose of stabilizing output and employment.
  D) gives up its ability to use only monetary policy for the purpose of stabilizing output and employment.
  E) does not gives up its ability to use only monetary policy for the purpose of stabilizing output and employment.

Question 2

Even under flexible exchange rate regime, governments could not be indifferent to the behavior of exchange rates and inevitably surrendered some of their policy autonomy in other areas to prevent exchange rate movements they viewed as harmful to
 
  their economies. Discuss.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

CAPTAINAMERICA

  • Sr. Member
  • ****
  • Posts: 325
Answer to Question 1

C

Answer to Question 2

True. One example is Volcker in October 1979 decreasing the U.S. money supply to halt further weakening of the dollar.




DelorasTo

  • Member
  • Posts: 548
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)


mjenn52

  • Member
  • Posts: 351
Reply 3 on: Yesterday
Excellent

 

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

Did you know?

Malaria mortality rates are falling. Increased malaria prevention and control measures have greatly improved these rates. Since 2000, malaria mortality rates have fallen globally by 60% among all age groups, and by 65% among children under age 5.

For a complete list of videos, visit our video library