When the demand for a currency permanently increases, that nation's central bank can maintain its fixed exchange rate indefinitely

Indicate whether the statement is true or false


TRUE

Economics

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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as

A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward

Economics

The ________ a corporation keeps to finance future expansion are known as retained earnings

A) dividends B) stock C) bonds D) profits

Economics

Given the demand function in log-linear form: Q = 120 - 1.5P + 12ADV where Q = quantity, P = price, and ADV = advertising expenditures, what is the price elasticity?

A) 1.5, inelastic B) -1.5, elastic C) 120, elastic D) 12, elastic

Economics

Consumer groups tend to lobby for

A) price floors. B) price ceilings. C) quantity quotas. D) taxes.

Economics