Macroeconomic Issues and Analysis

A. The ECU
B. currency swap agreement between member
C. the exchange rate mechanism
D. all of the above

A. crowds out imports
B. crowds out public consumption
C. crowds out exports
D. reduces the budget deficit

A. stable
B. predictable
C. volatile
D. depreciating

A. interest rates
B. competitiveness
C. trade
D. speculation

A. higher import prices, higher wages increases
B. lower export prices, lower imports volumes
C. higher import prices, lower export prices
D. higher wage increases lower import volumes

A. money supply targets
B. income policy
C. interest rates
D. inflation targets

A. buy foreign exchange, sell domestic currency
B. sell foreign exchange buy domestic currency
C. buy foreign exchange buy domestic currency
D. sell foreign exchange sell domestic currency

A. Price difference
B. balance of payments difference
C. current account differences
D. expected exchange rate changes

A. exports
B. taxes
C. inventories
D. imports

A. deficit
B. surplus
C. revaluation
D. devaluation