Suppose the United States is experiencing a balance of payments surplus. To prevent the exchange rate from appreciating, the U.S. Treasury must:
A. sell foreign currency and buy dollars.
B. sell dollars and buy foreign currency.
C. sell both dollars and foreign currency.
D. buy both dollars and foreign currency.
Answer: B
You might also like to view...
Do inventions have to be major technological breakthroughs to affect the efficiency of producing goods? Explain
What will be an ideal response?
The above table gives some of the costs of the Delicious Pie Company. The marginal cost of increasing pie output from 200 to 300 pies equals ________ per pie
A) $1.800 B) $1,000 C) $8 D) $6
Using a graph, show and explain the difference between an anticipated and an unanticipated increase in aggregate demand
What will be an ideal response?
Public employees (more frequently than private employees) tend
A. to participate in defined contribution programs. B. to begin and end their career with the same employer. C. to fall for Ponzi schemes. D. to have well-funded private savings plans.