If a developing country has sufficient reserves, the buying and selling of foreign currency by the central bank is:
A. likely to have a much smaller impact on the exchange rate than in developed countries.
B. completely ineffective on the exchange rate.
C. likely to have a much greater impact on the exchange rate than in developed countries.
D. likely to have roughly the same impact on the exchange rate as in developed countries.
Answer: C
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Figure 3-4
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A. Full-employment policies B. A technological advance strictly applicable to the production of apples C. An increase in land available for agricultural use D. A transfer of available resources from apples to wheat production
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Indicate whether the statement is true or false
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