The choice of exchange rate system does not affect the effectiveness of monetary policy.
举一反三
- The key advantage of rule-based monetary policy over the discretionary monetary policy is the ability to( ), improve the effectiveness of monetary policy. A: Anticipation management B: Constrain the spam C: Leaning against the wind D: Control inflation
- Which of the following statements is accurate?____. A: Fiscal policy is not effective with fixed exchange rates in an environment of highly responsive international capital flows. B: Fiscal policy is highly effective with fixed exchange rates and unresponsive international capital flows. C: Fixed exchange rates greatly constrain a country's ability to pursue an independent monetary policy. D: Contractionary monetary policy is effective under a fixed exchange rate regime.
- Which one of the following statements is the MOST accurate? () A: Fiscal policy<br/>affects employment less under fixed than under flexible exchange rate<br/>regimes. B: Fiscal policy has<br/>the same effect on employment under fixed and flexible exchange rate<br/>regimes. C: Fiscal policy<br/>cannot affect employment under fixed exchange rate but does affect<br/>output under flexible exchange rate regimes. D: Fiscal policy<br/>affects employment more under fixed than under flexible exchange rate<br/>regimes.
- All of the following statements are correct EXCEPT: A: China's exchange rate policy boosts exports in the long run. B: China's exchange rate policy is mainly an attempt to control inflation. C: China's exchange rate policy results in a depreciated yuan. D: China's exchange rate policy does not impact the real exchange rate in the long run.
- The core of the European monetary system is( ) A: European Currency Unit B: European central exchange rate system C: European Monetary Fund D: European Central Bank