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The Switch to Flexible Exchange Rates in 1973 Has Made

question 122

Multiple Choice

The switch to flexible exchange rates in 1973 has made the effect of monetary policy on net exports a ________ important component of the monetary policy multiplier process,and thus has ________ the effectiveness lag.


Definitions:

Random Variable

A variable whose values are outcomes of a random phenomenon, typically quantifying aspects of occurrences that are subject to random variations.

Exchange Rate

The value of one currency for the purpose of converting it into another currency.

Verb

A word used to describe an action, state, or occurrence, and forming the main part of the predicate of a sentence.

Essay

A short piece of writing on a particular subject, often expressing the author's personal viewpoint.

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