An overvalued fixed exchange rate can be maintained only as long as:
A) the country's central bank reserves are available to support currency intervention in the foreign exchange market.
B) the country's central bank can increase the domestic money supply.
C) the country's government increases debt financing.
D) none of the above.
A
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U.S. securities firms recently agreed to pay a record amount of $1.4 billion in settlement charges brought by government regulators. Regulators claimed that firms had abused investors during the market boom of the 1990s
Abuses included analysts tailoring their research reports and ratings on the stocks they covered in order to win more business for their firm. If this settlement causes Wall Street firms to comply with the letter of the law but they violate the spirit of the law, the firms are engaging in A) elimination of conflicts of interest. B) creative response. C) the capture hypothesis. D) deregulation.
If there are many firms participating in a market, the market is either
a. an oligopoly or monopolistically competitive. b. perfectly competitive or monopolistically competitive. c. an oligopoly or perfectly competitive. d. an oligopoly or a cartel.
If the demand for money increases, what happens in the IS-LM framework?
A) The IS curve shifts right. B) The LM curve shifts right. C) The IS curve shifts left. D) The LM curve shifts left.
If policymakers deem inflation as being too high, then the policy response should be monetary ________, which shifts aggregate demand ________.
A. easing; right B. easing; a left C. tightening; right D. tightening; left