Unformatted text preview: 56. The choice between the alternative exchange rate regimes (fixed or floating) is likely to involve a trade-off between A. national monetary policy autonomy and international economic integration. B. exchange rate uncertainty and national policy autonomy. C. Balance of Payments autonomy and inflation. D. unemployment and inflation. 57. Under a purely flexible exchange rate system A. supply and demand set the exchange rates. B. governments can set the exchange rate by buying or selling reserves. C. governments can set exchange rates with fiscal policy. D. answers b) and c) are correct....
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This note was uploaded on 11/09/2011 for the course FIN IFMG201 taught by Professor Eun during the Spring '11 term at Michigan Flint.
- Spring '11
- Exchange Rate