Policy Space Game

Which are better to use as exchange rate instruments?

• Fixed Pegs and Full Floating

• Fixed Pegs and Managed Floating

• Soft Pegs and Managed Floating

• Soft Pegs and Full Floating

Which policy aims to achieve price stability target?

• Income policy

• Proactive trade policy

• Industrial policy

• Institutional policy

Proactive trade and industrial policies main target is

• Maintain sustainable current-account position

• Foster nascent industrial activity

• Maintain sustainable current-account position

We can achieve economic growth target through

• Increase interest rate

• Put an import-tariff policy

• Maintain a stable real exchange rate

Can approach macroeconomic stabilization through fiscal policy with the help of ...................................... instrument.

• Controlling wage growth

• Fiscal stabilization

• Promoting technology adaptation

An important instrument for proactive trade and industrial policies is

• Subsidizing exports

• Tightening compulsory licensing

• Changing the domestic financial system

Monetary policy aims mainly to have

• Better technology transfer

• Higher economic growth

• Sustainable current account position

Monitoring information and co-ordination externalities need which policy?

• Fiscal Policy

• Exchange rate policy

• Monetary Policy

• Institutional Policy