If a central bank wishes to raise the foreign-exchange value of its currency, it will
A) buy domestic currency and sell foreign assets.
B) sell domestic currency and buy foreign assets.
C) attempt to reduce domestic interest rates.
D) attempt to raise the domestic price level relative to foreign price levels.
A
You might also like to view...
Consider a society consisting of just a farmer and a tailor. The farmer has 30 units of food but no clothing. The tailor has 60 units of clothing but no food. Suppose each has the utility function U = F1/3C2/3
If the price of clothing is always $1, and the food price is currently $1, then we can conclude A) the market is at a competitive equilibrium. B) the price of food will drop towards a competitive equilibrium. C) the price of food will increase towards a competitive equilibrium. D) None of the above.
In the market for domestic avocados, what would happen to the market clearing price and the equilibrium quantity if there was a drought in avocado growing areas?
A) The market clearing price would rise, and the equilibrium quantity would rise. B) The market clearing price would fall, and the equilibrium quantity would rise. C) The market clearing price would rise, and the equilibrium quantity would fall. D) The market clearing price would fall, and the equilibrium quantity would fall.
A nation's official reserve transaction account
A) is always a positive number. B) is always a negative number. C) is always equal to zero. D) compensates for the differences in the current and capital accounts.
Tax collections in the United States are an example of
a. tradition in a mainly market system b. command in a mainly tradition system c. market in a mainly tradition system d. tradition in a mainly command system e. command in a mainly market system