Even though it may seem that nations have a wide variety of policy options to stabilize their economies, there are a number of issues to be considered and overcome. Which of the following is NOT an issue confronting policy makers?
A) the desire to maintain fixed exchange rates or membership in a pegged currency bloc
B) long and uncertain time lags when policy effects will occur
C) the pass-through issue, when little effect occurs on the real effective exchange rate
D) international controls that limit the ability of any nation to determine its exchange rate policy

Question

Quizplus · Accepted Answer

International controls limiting a nation's ability to determine its exchange rate policy is not a commonly recognized issue confronting policy makers. The other options listed are all common issues that policy makers face when attempting to stabilize their economies.

Even Though It May Seem That Nations Have a Wide