Author Question: Maintaining a fixed exchange rate over the long run is today A) virtually impossible. B) more ... (Read 76 times)

mikaylakyoung · **on:** Jun 30, 2018

Maintaining a fixed exchange rate over the long run is today

A) virtually impossible.
B) more vulnerable to speculative attacks than in the past.
C) preferable.
D) possible only in special cases such as maintaining strict capital controls.
E) aided by technology which allows instant movement of money between financial markets in different countries.

Question 2

Economic experience since 1973 indicate that, under floating exchange rates

A) large and persistent departures from external balance were not prevented.
B) large and persistent departures from external balance were prevented.
C) changes in exchange rates failed to act as automatic stabilizers.
D) reduced monetary policy autonomy.
E) monetary policy autonomy was protected.