In many countries, an exchange-rate peg substitutes for ________. ...

[bcretired]

In many countries, an exchange-rate peg substitutes for ________.
 
  A) speculative attacks
  B) an export-oriented sector
  C) discretionary monetary policy
  D) capital controls

Question 2

A negative shock in aggregate demand will likely result in ________.
 
  A) a permanent change in output, if the central bank responds by lowering interest rates
  B) no permanent change in the equilibrium inflation rate, unless the central bank responds by lowering interest rates
  C) an eventual increase in aggregate supply for any inflation rate, if the central bank responds by lowering interest rates
  D) all of the above
  E) none of the above

[vkodali]

Answer to Question 1

C

Answer to Question 2

E

[bcretired]

YES! Correct, THANKS for helping me on my review

[ricroger]

Thanks for the timely response, appreciate it