Suppose the U.S. dollar appreciates in value against the Australian dollar, and the Fed intervenes in the foreign exchange market by using U.S. dollars to buy Australian dollars. The Fed could sterilize the expansionary effect of this intervention by:
a. buying U.S. dollars in the foreign exchange market.
b. buying U.S. government bonds in the domestic open market.
c. selling Australian dollars in the foreign exchange market.
d. selling U.S. government bonds in the domestic open market.
e. buying Australian dollars in the foreign exchange market.
d
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The shapes of the total product and marginal product curves are related because
a. an increase in total product pulls marginal product up. b. marginal product gives the slope of total product. c. marginal product increases as total product increases. d. the marginal product curve lies above the total product curve.
Income received minus direct taxes is called
a. national income b. personal income c. disposable personal income d. transfer payments e. net national product
Rank the following state and local government expenditure categories from smallest to largest
a. education, health, highways b. education, highways, health c. highways, health, education d. health, education, highways.
As a result of the Great Recession, most financial markets hit bottom around
A. September 2008. B. March 2009. C. September 2009. D. March 2010.