6. A government can target its exchange rate only if it: A) increases the amount of uncertainty in the foreign exchange markets. B) is willing to give up its use of monetary...

6.

A government can target its exchange rate only if it:

A)

increases the amount of uncertainty in the foreign exchange markets.

B)

is willing to give up its use of monetary policy for stabilization purposes.

C)

pursues policies that tend to be inflationary.

D)

continues to actively use monetary policy for exchange market intervention and stabilization purposes.