Suppose the United States is experiencing a balance of payments deficit. To prevent the exchange rate from depreciating, the U.S. Treasury must
A) buy both dollars and foreign currency. B) sell both dollars and foreign currency.
C) sell dollars and buy foreign currency. D) sell foreign currency and buy dollars.
D
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An unexpected rise in Retail Sales should send bond prices __________ and stock prices __________
A) up; up B) up; down C) down; up D) down; down
All buyers benefit from a binding price ceiling
a. True b. False Indicate whether the statement is true or false
Carefully explain how monetary policy can be used to counter a recession. Explain what the central bank does as well as how its actions affect the economy. Under what circumstances is fiscal policy especially useful?
In the U.S. balance of payments, purchases of foreign assets by U.S. residents are tabulated as a:
A. unilateral transfer. B. capital outflow. C. current account outflow. D. capital inflow.