If a country moves from a fixed to flexible exchange rates, its macroeconomic po

ID: 1177034 • Letter: I

Question

If a country moves from a fixed to flexible exchange rates, its macroeconomic policy

A. is no longer restricted

B. is restricted, as it can only use monetary policy to achieve its economic goals

C. is restricted, as it can only use fiscal policy to achieve its economic goals

D. must follow policy directives from the IMF

The "crawling-peg" exchange rate system

A. is an announced regular change in the value of a nations currency by the World Bank

B. is an announced regular change in the value of a nations currency by the IMF

C. is an announced regular change in the value of a nations currency by the nations central bank

D. is an announced regular change in the value of a nations currency by the speculators

A Japanese family flies from Tokyo to Atlanta on an American Airlines Jet. This transaction is

A. considered an export of service in the U.S balance of payment accounts

B. a deficit item in the balance of payment accounty of Japan

C. Both of the above are correct

D none of the above.

. is restricted, as it can only use monetary policy to achieve its economic goals

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