Author Question: Under ERM 2 rules, the national central bank of an EU member with its own currency can suspend euro ... (Read 98 times)

Sportsfan2111

  • Hero Member
  • *****
  • Posts: 585
Under ERM 2 rules, the national central bank of an EU member with its own currency can suspend euro intervention operations
 
  A) if there is a civil war.
  B) if they result in money supply changes that threaten to destabilize the domestic price level.
  C) if there is a current account deficit.
  D) if there is a current account surplus.
  E) if they result in a weakened current account.

Question 2

If most of the shocks that buffet the economy come from the output market shocks, then
 
  A) fixed exchange rates are better than flexible exchange rates.
  B) flexible exchange rates are better than fixed exchange rates.
  C) which system is chosen is not important.
  D) fixed exchange rates are better than flexible exchange rates only in the short run.
  E) flexible exchange rates are better than fixed exchange rates only in the short-run.



leahm14

  • Sr. Member
  • ****
  • Posts: 322
Answer to Question 1

B

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Chronic marijuana use can damage the white blood cells and reduce the immune system's ability to respond to disease by as much as 40%. Without a strong immune system, the body is vulnerable to all kinds of degenerative and infectious diseases.

Did you know?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

Did you know?

For pediatric patients, intravenous fluids are the most commonly cited products involved in medication errors that are reported to the USP.

Did you know?

In most climates, 8 to 10 glasses of water per day is recommended for adults. The best indicator for adequate fluid intake is frequent, clear urination.

Did you know?

Less than one of every three adults with high LDL cholesterol has the condition under control. Only 48.1% with the condition are being treated for it.

For a complete list of videos, visit our video library