If Denmark wished to keep its exchange rate with the euro fixed, what monetary policy options...
If Denmark wished to keep its exchange rate with the euro fixed, what monetary policy options are available to lower unemployment in the short run?
- Denmark has all the options available to it, because domestic monetary policy is conducted inside the nation and has no bearing on its international variables.
- Traders would realize that any monetary policy actions taken inside a nation would improve economic conditions without affecting international variables.
- Denmark cannot use any monetary policy that would cause its short-run exchange rate to depreciate against the euro.
- Denmark’s monetary action would restore confidence and help keep its currency stable.
Homework Answers
Denmark cannot use any monetary policy that would cause its short-run exchange rate to depreciate against the euro.
the above is answer..
because it has fixed exchange rate with Euro which means Denmark will not have independent monetary policy
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If Denmark wished to keep its exchange rate with the euro fixed,
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I need Summary of this Paper i dont need long summary i need
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some conclusions and contributes of this paper. I need this for my
Finishing Project so i need this ASAP please ( IN 1-2-3 HOURS
PLEASE !!!)
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