Question

The large changes in exchange rate that occurs when policies are -
between the countries pose a measure threat to free trade
विनिमय दरामध्ये मोठ्या प्रमाणात बदल घडून येतो, जेव्हा देशांमधील धोरणे
ही ज्यामुळे मुक्त व्यापाराला धोका असतो.
A. Fully synchronized / पुर्णपणे समक्रमित असतात
B. Not fully synchronized / पुर्णपणे समक्रमित नसतात
C. Neutrally synchronized / तटस्थ समक्रमित असतात
D. Maybe fully synchronized / कदाचित पुर्णपणे समक्रमित असतात
analysis of the long run Philips curve is based on​

Answer 1

Explanation:

Exchange-Rate Policies

Because changes in exchange rates have macroeconomic effects on a nation’s economy, nations need to think about what exchange rate policy they should adopt. Exchange rate policies come in a range of different forms listed in Figure 1: let the foreign exchange market determine the exchange rate; let the market set the value of the exchange rate most of the time, but have the central bank sometimes intervene to prevent fluctuations that seem too large; have the central bank guarantee a specific exchange rate; or share a currency with other countries. Let’s discuss each type of exchange rate policy and its tradeoffs.