Monetarists believe that to promote long-term economic growth, national governments should:
a. Increase government spending and reduce taxes.
b. Reduce government spending and increase taxes.
c. Promote research and development with federal funds.
d. Impose tariffs and quotas until the nation is on its feet.
e. Create stable and predictable political environments and encourage competitive markets.
Question 2
Which of the following is not an advantage of fixed nominal exchange rates?
a. They secure the international competitive position of a nation.
b. They can reduce short-term business risks associated with international payments for trade.
c. International price comparability is promoted.
d. Nations can reduce or eliminate the cost of hedging.
