When an exchange-rate crisis befalls a pegged currency, ...

[cartlidgeashley]

When an exchange-rate crisis befalls a pegged currency, experience suggests that damage to the economy may be minimized by ________.
 
  A) appealing to creditors to provide more liquidity
  B) rapid adoption of a currency board
  C) abandoning the peg
  D) launching speculative counter-attacks

Question 2

When a temporary negative supply shock hits the economy ________.
 
  A) the divine coincidence does not always hold
  B) the divine coincidence holds in the short-run
  C) the divine coincidence does not hold in the long-run
  D) all of the above
  E) none of the above

[ASDFGJLO]

Answer to Question 1

C

Answer to Question 2

A

[cartlidgeashley]

TYSM

[kishoreddi]

YES! Correct, THANKS for helping me on my review