Everything else held constant, if a central bank makes a sterilized purchase of foreign assets, then the domestic currency will
A) appreciate.
B) depreciate.
C) either appreciate, depreciate, or remain constant.
D) not be affected.
D
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Economic efficiency requires that Pareto improvements still be possible
a. True b. False
If the British government fixes the exchange rate for its currency (the pound) below market equilibrium, it will contribute to a positive balance on current account
Indicate whether the statement is true or false
Explain the concept of sunk costs with an example
The income effect is the
A) increase in the interest rate caused by an increase in Real GDP. B) increase in the interest rate due to a higher expected inflation rate. C) decrease in the interest rate due to an increase in the supply of loanable funds. D) change in national income brought about by a change in interest rates. E) rate of change in national income brought about by a change in the supply of money.