« previous next »

Author Question: The mechanism behind the inflation insulation provided by a floating exchange rate is A) ... (Read 147 times)

krzymel

  • Hero Member
  • *****
  • Posts: 548
on: Jun 30, 2018
The mechanism behind the inflation insulation provided by a floating exchange rate is
 
  A) Purchasing Power Parity.
  B) a fixed AA curve.
  C) market speculation.
  D) tight monetary policy.
  E) symmetry.

Question 2

Explain the credibility theory of the EMS.
 
  What will be an ideal response?


cadimas

  • Sr. Member
  • ****
  • Posts: 362
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

In this way, the other EMS countries in effect imported the credibility of the German central bank in fighting inflation, thus discouraging the development of inflationary pressures at home. This is known as the credibility theory of the EMS.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Drug abusers experience the following scenario: The pleasure given by their drug (or drugs) of choice is so strong that it is difficult to eradicate even after years of staying away from the substances involved. Certain triggers may cause a drug abuser to relapse. Research shows that long-term drug abuse results in significant changes in brain function that persist long after an individual stops using drugs. It is most important to realize that the same is true of not just illegal substances but alcohol and tobacco as well.

Did you know?

About 600,000 particles of skin are shed every hour by each human. If you live to age 70 years, you have shed 105 pounds of dead skin.

Did you know?

The senior population grows every year. Seniors older than 65 years of age now comprise more than 13% of the total population. However, women outlive men. In the 85-and-over age group, there are only 45 men to every 100 women.

Did you know?

Thyroid conditions cause a higher risk of fibromyalgia and chronic fatigue syndrome.

Did you know?

According to the FDA, adverse drug events harmed or killed approximately 1,200,000 people in the United States in the year 2015.

A nurse adjusts the rate of a client’s IV. A nurse adjusts the rate of a client’s IV.
p53 mechanism p53 mechanism
Sample Workout in the Target Heart Rate Range Sample Workout in the Target Heart Rate Range
The lower respiratory tract and the process of gas exchange. The lower respiratory tract and the process of gas exchange.
States that require licensing or certification. Graphic provided by Associated Bodywork & ... States that require licensing or certification. Graphic provided by Associated Bodywork & ...
How to solve rate problems leading to fractional equations (Question 3) How to solve rate problems leading to fractional equations (Question 3)
Video: Negative Feedback Regulation of Blood Pressure

For a complete list of videos, visit our video library