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Which of the Following Reasons Is a weakness of the Explanation

Question 34

Multiple Choice

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


A) It tells us little about exchange-rate policy at other times other than election periods.
B) Different political parties pursue distinct macroeconomic objectives.
C) Right wing parties are typically less concerned about unemployment and more concerned about inflation.
D) It does not assume that all governments value monetary autonomy more than exchange-rate stability.
E) Exchange rate policy is determined by the group that has the greatest influence regardless of elections.

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