The buying and selling of foreign currency by the central bank is a trade policy whose objective is:
A. reducing purchases of assets abroad.
B. stabilizing the exchange rate against external shocks.
C. stabilizing the interest rate against foreign capital outflows.
D. promoting long term economic growth.
Answer: B
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Import-substitution development policies have been especially effective in promoting employment in newly industrializing sectors because these policies discourage the import of foreign capital goods
Indicate whether the statement is true or false
An expenditure schedule model with no government sector shows the relationship between
a. C and national product. b. C and disposable income. c. C + I and national income. d. GDP and disposable income.
Consider the demand curve below. If the price is A, then the total revenues of sellers would be the area:
A. DABE
B. 0ABC
C. 0DEF
D. CBEF
The value of all final goods and services produced during a given time period measures a nation's
A) net exports. B) net national product. C) consumer price index. D) gross domestic product.