The simplest device to analyze dynamic decisions is a A) ...

[formula1]

The simplest device to analyze dynamic decisions is a
 
  A) one-period model.
  B) two-period model.
  C) model that includes only the number of years of a typical consumer's lifetime.
  D) continuous time model.

Question 2

Adoption of a currency board
 
  A) is one method for achieving a soft peg policy.
  B) places responsibility for exchange rate management in the hands of an agency that is independent of political influences.
  C) mandates the use of currency in all domestic transactions.
  D) requires that a centralized institution holds interest-bearing assets denominated in the currency against which the nominal exchange rate is being fixed.

[Ahnyah]

Answer to Question 1

B

Answer to Question 2

D

[formula1]

Excellent

[ricroger]

Thanks for the timely response, appreciate it