Which of the Goals Pursued by Policymakers in an Open

question 10

Multiple Choice

Which of the goals pursued by policymakers in an open economy is desirable because it can help reduce the volatility of economic activity?

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

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Definitions:

Terror

Intense, sharp, overmastering fear that can be both a psychological and physiological response to extreme or life-threatening situations.

Posttraumatic Stress Disorder

A psychiatric disorder that may occur in people who have experienced or witnessed a traumatic event.

U.S. Civil War

A significant conflict from 1861 to 1865 in the United States between the Northern states (Union) and the Southern secessionist states (Confederacy) primarily over issues of slavery and states' rights.

Melancholia

A condition described by early Greek and Roman philosophers and physicians as consisting of unshakable sadness. Today it is known as depression.