:> Question 1 1 pts In the model of downward wage rigidity, a fall in the demand for nontraded goods {:3 will lead to a current account decit {:3 will lead to a real exchange rate appreciation D will lead to a rise in unemployment C} will increase the supply of traded goods 'Forward Guidance' in monetary policy D promises to keep interest rates low for a long time in the future [j is a forecast by the central bank of future ination [j is an agreement between the central bank and the government {:3 is a way of regulating the private banking sector Question 3 1 pts For an optimal currency area, it is important to have O Common macro shocks for all regions O Very low inflation rates O A common language among all regions O Countries should be geographically close to one another Question 4 1 pts In the model of the non-traded good market with downwardly rigid wages, a wage subsidy O will lead to a real exchange rate appreciation O will create unemployment O will shift the labour supply curve down and to the right O will cause a current account deficit