Are policy trade-offs any better when exchange rates are, Macroeconomics

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Are policy trade-offs any better when exchange rates are

Question: 1. Are policy trade-offs any better when exchange rates are fixed? Assume that exchange rates are fixed. What policy best fights inflation and unemployment while reducing the balance-of-payments deficit? (Hint: consider the policies discussed in the text example.) Explain.

2. This chapter listed several national and international economic goals. What other economic, social, or political goals guide national policy? Explain your reasoning.

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