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.
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.
举一反三
- The People's Bank of China has A: allowed a flexible exchange rate to boost exports. B: managed its exchange rate to help control inflation. C: strictly followed a fixed exchange rate to boost exports. D: purchased U.S. dollars to appreciate the yuan.
- Direct control includes（） A: fiscal control B: exchange rate policy C: foreign exchange control D: trade policy
- Which of the following statements is the most accurate? In general,_____________ A: the monetary approach to the exchange rate is a long run theory. B: the monetary approach to the exchange rate is a short run theory. C: the monetary approach to the exchange rate is both a short and long run theory. D: the monetary approach to the exchange rate neither long run nor short run theory. E: the monetary approach to the exchange rate is considered less practical than the law of one price.
- 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.
- 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.