Which of the Goals Pursued by Policymakers in an Open

question 54

Multiple Choice

Which of the goals pursued by policymakers in an open economy is desirable because it reduces the uncertainty of conducting economic activity across borders?

• A) exchange-rate stability
• B) monetary policy independence
• C) free capital flows
• D) appreciation of the domestic currency

---

Definitions:

Formal Leadership

Leadership established through an organizational hierarchy or officially sanctioned role.

Coercive Power

A form of power based on the ability to deliver punishments or impose penalties.

Legitimate Power

The authority that a person or position holds within an organization, which is accepted and recognized by others as right and proper.

Organizational Position

The rank or status of an individual within a company's hierarchy, defining their roles, responsibilities, and authority.