Under a fixed exchange rate regime, if a country has an overvalued exchange rate, then its central bank's attempt to keep its currency from ________ will result in a ________ of international reserves

A) depreciating; gain
B) depreciating; loss
C) appreciating; gain
D) appreciating; loss


B

Economics

You might also like to view...

The income elasticity of demand for a good that is extremely necessary for the existence of its consumers is close to zero

a. True b. False Indicate whether the statement is true or false

Economics

A decrease in the price of a good or service leads to a(n) ________ that leads to a(n) ________.

A. decrease in demand; movement along the demand curve B. decrease in quantity demanded; shift of the demand curve C. increase in quantity demanded; movement along the demand curve D. increase in demand; shift of the demand curve

Economics

A risk-neutral individual will make investment decisions purely based on net present value because

A) she doesn't care about utility. B) because utility is a linear function of wealth. C) she loves to take risk. D) net present value is always more than expected utility.

Economics

A firm faces the labor productivity and cost schedule in the table above. The wage rate schedule suggests that the firm:



A. Is purely competitive in the labor market

B. Is purely competitive in the product market

C. Has some monopoly power in the product market

D. Is not purely competitive in the labor market

Economics