Under a fixed exchange rate system, at high domestic real interest rates the demand for domestic currency ________, so the central bank ________ foreign-exchange reserves
A) increases; acquires
B) increases; loses
C) decreases; acquires
D) decreases; loses
A
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Classical economists believe that ________
A) it takes a long time for economic variables to reach equilibrium B) short-run fluctuations are too infrequent and mild to be of much interest C) real variables like output and investment are not determined by nominal variables D) all of the above E) none of the above
Which of the following is NOT an economic good?
A) a haircut B) broccoli C) garbage D) a textbook
The linear probability model is
A) the application of the multiple regression model with a continuous left-hand side variable and a binary variable as at least one of the regressors. B) an example of probit estimation. C) another word for logit estimation. D) the application of the linear multiple regression model to a binary dependent variable.
In a market economy, household income is determined primarily by
a. the age of the head of household b. the gender of the head of household c. luck d. the productivity of labor resources e. government transfer payments