Fundamentally, the reason for exchange rate overshooting is that（）
A. the price levels do not react as quickly as the exchange rate
B. the LM curve reacts more slowly than the IS curve
C. exchange rate markets react more slowly than domestic price levels
D. there is a lag in the reaction of markets to fiscal policy
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__ is（are） the profits that a government receives because the value of money printed is greater than the cost of printing it（）
A. Seignorage
B. Money revenue
Currency gain
D. Printing income
Optimal currency areas should have__ in order to succeed（）
A. high labor mobility
B. low labor mobility
C. imperfectly mobile capital
D. few policy externalities
The currencies most often used in international transactions are frequently called（）
A. vehicle currencies
B. seignorage
C. target currencies
D. competitive currencies
If the fiscal authority is focused on maintaining a balance of payments equilibrium, it is said to be pursuing（）
A. external balance
B. internal balance
C. payments balance
D. international peace
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