Author Question: If the Fed follows a policy of fixed exchange rates, an undervalued dollar will force the Fed to ... (Read 14 times)

DyllonKazuo · **on:** Jun 30, 2018

If the Fed follows a policy of fixed exchange rates, an undervalued dollar will force the Fed to

a. conduct open market purchases.
b. raise the discount rate.
c. raise the required reserve ratio.
d. cut taxes or raise government spending.

Question 2

Special interest groups (such as doctors, teachers, lawyers, health insurance companies, the automobile industry and others) can best be characterized by which of the following statements?

(a) They are constantly working the government to seek rents from policy decisions.
(b) They are resistant to change in governmental policies that benefit them at the expense of others.
(c) They help push through federal policies that result in technological backwardness, low productivity and less overall economic growth.
(d) They can be characterized by all of the above.