If a central bank targets the exchange rate,it
A) enhances its ability to achieve full employment
B) raises interest rates whenever the currency appreciates
C) reduces interest rates in order to force its currency to appreciate
D) achieves the same inflation rate as the target country
E) stabilizes GDP by stabilizing net exports
Correct Answer:
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Q5: In practice,effective deflation
A) occurs when the inflation
Q6: For central banks,short term interest rates are
Q7: Using the money supply as the exclusive
Q8: Central banks commonly aim to keep the
Q9: Which of the following events or trends
Q11: Which of the following is the most
Q12: The horizontal and vertical axes of the
Q13: Setting a target of zero for the
Q14: Which of the following is most likely
Q15: The LM curve slopes upward because
A) as
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