Jeopardy 110

Jeopardy 110 - 7. dont know a. relationship between FED and...

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1. inflation a. hyperactivity in this leads countries to turn to fixed exchange rates 2. volatility a. unpredictable movement of an exchange rate 3. higher a. effect on importers profits when foreign currency rises in the meantime 4. lower a. effect on importers profits when foreign currency falls in the meantime 5. lower a. effect on investor’s RoR when foreign currency rises after purchase 6. Exchange rate policy a. Central bank action that causes volatility in fixed systems if repeated
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Unformatted text preview: 7. dont know a. relationship between FED and govt. that contributes to low inflation 8. autonomy a. UK refuses Euro to achieve this 9. dont know a. failure of this exchange rate system is an example how fixed systems may not lead to lower inflation 10. fiscal and monetary a. two types of macro policy help exchange rate systems function smoothly...
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