One Lesson Policymakers Have Learned, and Which Was Evident from Japan's

question 34

Multiple Choice

One lesson policymakers have learned, and which was evident from Japan's experience in 2002, is:

• A)An intervention in the foreign exchange market will not work unless accompanied by a change in the interest rate
• B)An intervention in the foreign exchange market is almost always effective if done on a regular basis
• C)In order for foreign exchange interventions to work, they must be frequent and expected
• D)For an intervention in the foreign exchange market to work, the interest rate must be held constant by the central bank

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Definitions:

Doodads

Informal term for small, often decorative objects with no specific utility or function.

Type Alpha Employees

A categorization for employees who are highly motivated, confident, and capable of independent work.

Type Beta Employees

A categorization in a theoretical model that may refer to a certain group of employees characterized by specific attributes or behaviors, commonly seen in psychological or economic models.

Plowshares

Tools used in farming for cutting furrows in the soil, symbolic of peaceful applications of resources.