Which of the Following Reasons Is a Weakness of the Explanation

Multiple Choice

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

A) The sectoral approach may underestimate the importance that export-oriented firms attach to exchange rate stability.
B) The sectoral approach may overestimate the importance that the traded goods sector attaches to a strong currency.
C) The sectoral model tells us little about exchange-rate policy outcomes.
D) The sectoral approach may overestimate the importance that export-oriented firms attach to monetary-policy autonomy.
E) The sectoral approach may underestimate the importance that the traded goods sector attaches to a weak currency.