A foreign exchange intervention that does not alter the domestic monetary base is:
A. impossible.
B. sterilized.
C. likely to change domestic interest rates.
D. unsterilized.
Answer: B
You might also like to view...
Which function of money represents a measure for stating the prices of goods and services?
A) medium of exchange B) unit of account C) store of value D) means of payment
The elasticity of output with respect to capital
A) is the increase in output resulting from an increase in the capital stock. B) is the percentage increase in output resulting from a 1 % increase in the capital stock. C) is always greater than one. D) is the inverse of the elasticity of output with respect to labor.
When the demand for money becomes less responsive to changes in income, the LM curve becomes ________ and it also shifts to the ________
A) flatter, left B) flatter, right C) steeper, left D) steeper, right
A decision tree is used when modeling:
A. a prisoner's dilemma. B. simultaneous decisions. C. any type of game. D. games in which timing matters.