Which of the following is false?
A)As the U.S. economy becomes more globalized, monetary policymakers must be aware of the international effects of policy.
B)If monetary policymakers establish policy goals for inflation and growth that are widely divergent from other countries, substantial fluctuations in exchange rates can result.
C)U.S. policymakers have always been more concerned about inflation while German policymakers are more concerned about unemployment.
D)Fluctuations in exchange rates greatly increase the exchange rate risks of international trade and finance.

Question

Quizplus · Accepted Answer

While it is true that the US economy becoming more globalized will require policymakers to consider international effects of policy (A), widely divergent policy goals can cause fluctuations in exchange rates (B), and fluctuations in exchange rates increase exchange rate risks of international trade and finance (D), it is not true that US policymakers have always been more concerned about inflation while German policymakers are more concerned about unemployment (C). Both countries have shifted their focus between inflation and unemployment over time.

Which of the Following Is False