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In a Managed Floating Exchange-Rate System,temporary Stabilization of the Dollar's

Question 35

Multiple Choice
In a managed floating exchange-rate system,temporary stabilization of the dollar's exchange value requires the Federal Reserve to adopt a (an) ____ monetary policy when the dollar is appreciating and a (an) ____ policy when the dollar is depreciating.
A) Expansionary,expansionary
B) Expansionary,contractionary
C) Contractionary,expansionary
D) Contractionary,contractionary

In a managed floating exchange-rate system,temporary stabilization of the dollar's exchange value requires the Federal Reserve to adopt a (an) ____ monetary policy when the dollar is appreciating and a (an) ____ policy when the dollar is depreciating.


A) Expansionary,expansionary
B) Expansionary,contractionary
C) Contractionary,expansionary
D) Contractionary,contractionary

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