Unformatted text preview: C. only for as long as it has reserves of gold. D. only for as long as it has independence of monetary policy. 94. A booming economy with a fixed or stable nominal exchange rate A. inevitably brings about an appreciation of the real exchange rate. B. inevitably brings about a depreciation of the real exchange rate. C. inevitably brings about a stabilization of the real exchange rate. D. inevitably brings about increased volatility of the real exchange rate. 95. Advantages of a flexible exchange rate include which of the following? A. National policy autonomy B. Easier external adjustments C. The government can use monetary and fiscal policies to pursue whatever economic goals it chooses. D. All of the above...
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- Spring '11
- Exchange Rate, United States dollar, Argentine government