« previous next »

Author Question: The mechanism behind the inflation insulation provided by a floating exchange rate is A) ... (Read 106 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?

Adults are resistant to the bacterium that causes Botulism. These bacteria thrive in honey – therefore, honey should never be given to infants since their immune systems are not yet resistant.

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Did you know?

More than 2,500 barbiturates have been synthesized. At the height of their popularity, about 50 were marketed for human use.

Did you know?

The strongest synthetic topical retinoid drug available, tazarotene, is used to treat sun-damaged skin, acne, and psoriasis.

The four ways in which animals exchange heat with the environment are radiation, evaporation, convec The four ways in which animals exchange heat with the environment are radiation, evaporation, convec
Mechanism of Action of Direct-Acting Antispasmodics Mechanism of Action of Direct-Acting Antispasmodics
Acceptable ranges of respiratory rate Acceptable ranges of respiratory rate
Schematic drawing of a permeation test cell used to measure the permeation rate of chemicals through ... Schematic drawing of a permeation test cell used to measure the permeation rate of chemicals through ...
The nuclear envelope is studded with pores, which allow exchange of materials The nuclear envelope is studded with pores, which allow exchange of materials
A riboswitch mechanism regulating translation of mRNA A riboswitch mechanism regulating translation of mRNA
Video: Glucagon (glycogenolysis and gluconeogenesis)

For a complete list of videos, visit our video library