Imperfect policy credibility implies that A) traders may not ...

[big1devin]

Imperfect policy credibility implies that
 
  A) traders may not believe that a central bank will do what it says.
  B) a central bank may intentionally undermine its policies.
  C) central bank authorities cannot be trusted.
  D) currency traders will often try to undermine central bank movements.

Question 2

The target zone model of exchange rates requires adjustment for
 
  A) imperfect policy credibility and intra-marginal adjustments.
  B) imperfect policy credibility.
  C) speculative pressure and intra-marginal adjustments.
  D) speculative pressure.

[bitingbit]

Answer to Question 1

A

Answer to Question 2

A

[big1devin]

Gracias!

[nathang24]

TYSM