Which of the Following Reasons Is a Weakness of the Explanation

question 39

Multiple Choice

Which of the following reasons is a weakness of the explanation of exchange-rate policy changes according to the sectoral model?

• A) The sectoral approach may underestimate the importance that export-oriented firms attach to exchange rate stability.
• B) The sectoral approach may overestimate the importance that the traded goods sector attaches to a strong currency.
• C) The sectoral model tells us little about exchange-rate policy outcomes.
• D) The sectoral approach may overestimate the importance that export-oriented firms attach to monetary-policy autonomy.
• E) The sectoral approach may underestimate the importance that the traded goods sector attaches to a weak currency.

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Definitions:

Narcotic

Substances that reduce pain, alter mood or behavior, and can cause sleep or stupor, often used medically for pain relief but can lead to addiction.

Ointment

A semisolid preparation usually containing medicinal substances, applied topically for therapeutic reasons.

Prescription

A formal authorization by a licensed medical professional for a patient to obtain, use, or be administered a medication or treatment.

Joint Commission

Refers to the agency that has oversight for hospitals adhering to regulations that allow them to bill for Medicare reimbursement for medical services provided.