Chap002 19 - 80. When money can move freely across borders,...

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77. Willem Duisenberg, the first president of the European Central Bank, defined "price stability" as an annual inflation rate of A. "no more than five percent." B. "less than but close to 2 percent." C. "absolutely no more than zero percent." D. "no more than three percent." 78. Robert A. Mundell won the Nobel Memorial Prize in Economic Science. He was A. one of the intellectual fathers of both the new European common currency and Reagan-era supply-side economics. B. one of the intellectual fathers of both the new European common currency and Reagan-era Keynesian economics. C. one of the intellectual fathers of both the Bretton Woods currency agreement and Keynesian economics. D. none of the above 79. In the EU, there is a A. low degree of fiscal integration among EU countries. B. high degree of fiscal integration among EU countries.
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Unformatted text preview: 80. When money can move freely across borders, policy makers must choose between A. exchange-rate stability and an economic growth. B. exchange-rate stability and inflation. C. exchange-rate stability and an independent monetary policy. D. exchange-rate stability and capital controls. 81. The Mexican Peso Crisis was touched off by A. an unsurprising announcement by the Mexican government to devalue to peso against the dollar by 14 percent. B. an unexpected announcement by the Mexican government to devalue to peso against the dollar by 14 percent. C. an announcement by the Mexican government to enact a currency board arrangement with the U.S. dollar. D. contagion from other Latin American and Asian financial markets....
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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.

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