This preview shows page 1. Sign up to view the full content.
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...
View Full Document
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