« previous next »

Author Question: The mechanism behind the inflation insulation provided by a floating exchange rate is A) ... (Read 210 times)

krzymel

  • Hero Member
  • *****
  • Posts: 548
on: Jun 30, 2018
The mechanism behind the inflation insulation provided by a floating exchange rate is
 
  A) Purchasing Power Parity.
  B) a fixed AA curve.
  C) market speculation.
  D) tight monetary policy.
  E) symmetry.

Question 2

Explain the credibility theory of the EMS.
 
  What will be an ideal response?


cadimas

  • Sr. Member
  • ****
  • Posts: 362
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

In this way, the other EMS countries in effect imported the credibility of the German central bank in fighting inflation, thus discouraging the development of inflationary pressures at home. This is known as the credibility theory of the EMS.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Prostaglandins were first isolated from human semen in Sweden in the 1930s. They were so named because the researcher thought that they came from the prostate gland. In fact, prostaglandins exist and are synthesized in almost every cell of the body.

Did you know?

On average, someone in the United States has a stroke about every 40 seconds. This is about 795,000 people per year.

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

Did you know?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

Did you know?

Approximately 15–25% of recognized pregnancies end in miscarriage. However, many miscarriages often occur before a woman even knows she is pregnant.

Feedforward control of breathing rate in an animal trained for athletic exercise. Feedforward control of breathing rate in an animal trained for athletic exercise.
Increasing access to care for teen mothers is important because they have a higher rate of pregnancy ... Increasing access to care for teen mothers is important because they have a higher rate of pregnancy ...
Static Stability & Environmental Lapse Rate Static Stability & Environmental Lapse Rate
The study of how traits such as flower color are passed from generation to generation provided the m The study of how traits such as flower color are passed from generation to generation provided the m
Transcriptional regulation by a riboswitch mechanism Transcriptional regulation by a riboswitch mechanism
Draw a full and complete mechanism for the following reaction shown below. Draw a full and complete mechanism for the following reaction shown below.
Video: Alzheimer's Disease

For a complete list of videos, visit our video library