Analysts have attempted to model the impact of monetary policy on net worth by emphasizing
A) the impact of lower interest rates on business spending on fixed investment.
B) the impact of lower interest rates on household spending on housing and durable goods.
C) the liquidity of balance sheet positions as a determinant of business and household spending.
D) the greater variability of business spending compared to household spending.
Question 2
In a crawling peg regime, ________.
A) the value of the currency is fixed to a basket of commodities
B) higher inflation is permitted
C) several anchor currencies are used in succession
D) the currency may gain value, but cannot lose value
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