When expansionary fiscal and monetary policies are joined with a ...

[tuffie]

When expansionary fiscal and monetary policies are joined with a ________ exchange rate system, the various components of economic policy often interact in ways that lead to a crisis followed by a steep recession.
 
  A) fixed
  B) floating
  C) crawling peg
  D) flexible

Question 2

Chinese exports of toys and footwear can be explained by factor endowments, while Chinese exports of telecommunications equipment and computers and accessories can be explained by product-cycle analysis.
 
  Indicate whether the statement is true or false

[DHRUVSHAH]

Answer to Question 1

C

Answer to Question 2

TRUE