If a central bank does not want to allow the domestic currency to depreciate, it will ________ international reserves by purchasing its currency, thereby ________ the monetary base and increasing the risk of higher unemployment
A) lose; decreasing
B) lose; increasing
C) acquire; decreasing
D) acquire; increasing
A
You might also like to view...
Suppose that the productivity used to produce computers advances. How does this change affect the supply of computers and the supply curve of computers?
What will be an ideal response?
The U.S. Postal Service uses Ramsey pricing
Indicate whether the statement is true or false
Which of the following goods is likely to be sold through an auction?
A) a loaf of bread from a local bakery B) the rights to drill for oil on a specified 200 acres in Texas C) an ear of corn D) a bag of flour
If a firm is not forced to pay for external costs, it will
A) continue to overproduce the good. B) continue to under produce the good. C) request a subsidy from the government. D) raise prices.