Answered: the exchange rate can't be used as a…

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Economics

the exchange rate can't be used as a monetary policy guide because?

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter19: The International Monetary System: Order Or Disorder

Section: Chapter Questions

Problem 6DQ

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Question

the exchange rate can't be used as a monetary policy guide because?

a. the data on exchange rate is not avaliable

b. the exchange rate can't be measured

c. the exhcange rate may change due to the foreign policy

d. the exchange rate is not accurate

Definition Definition Policy implemented by the central bank of a country (such as the Federal Reserve in the United States) to achieve certain macroeconomic objectives. Monetary policy is a supply-side macroeconomic policy that supervises the growth rate and money supply in the economy.

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