1.a. According to the "Impossible Trinity," if a country has a policy of controlling its exchange rate, and doesn't have capital controls, then it ___ have an independent central bank and an independent monetary policy. (Write "can" or "can not") 1.b The Bretton Woods policy of fixed exchange rates (1945-1973) was instituted in part because the Great Depression had been made worse by very high tariffs and ___ (Write "F" for Flexible Exchange Rates, "C" for Competitive Devaluations.) Bretton Woods also meant a complete abandonment of the Gold-Standard, True or False? ___ (Write "T" for True and "F" for False.) 2.a If a country is facing an internal imbalance of under employment, and and external imbalance of a too large a Curent Account deficit, then the recommended policies to restore balance involve a(n) ___ Fiscal and a(n) Monetary Policy. (Write "E" for Expansionary and "C" for Contractionary (Write "E" for Expansionary and "C" for Contractionary 2.b But if that country faces an internal imbalance c over employment, and and external imbalance of a too large a Curent Account then the recommended policies to restore balance involve a(n) ___ Fiscal and a(n) ___ Monetary Policy. (Write "E" for Expansionary and "C" for Contractionary (Write "E" for Expansionary and "C" for Contractionary
