{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chap002 22 - C only for as long as it has reserves of gold...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
91. Prior to the Argentine Peso Crisis A. Argentina had a "dirty float" where the government allowed the exchange rate to float within wide bands. B. Argentina had a currency board arrangement with the peso pegged to the U.S. dollar at parity. C. the Argentine government defaulted on its international debts. D. weakening of the U.S. dollar led the Argentine government to abandon dollarization. 92. A "good" (or ideal) international monetary system should provide 93. A central bank can fix an exchange rate
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

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

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern