To maintain a fixed exchange rate, a central bank
a. must buy up any excess supply of its currency at that rate
b. must buy up any excess demand for its currency at that rate
c. must maintain a fixed money supply
d. must also maintain a fixed interest rate target
e. should "buy low and sell high"
A
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If the institutions in an economy change from being inclusive to extractive, then in the economy:
A) the returns to entrepreneurship will increase. B) the opportunity cost of entrepreneurship will decrease. C) the number of entrepreneurs will decrease. D) existing entrepreneurs will earn higher profits.
A technological improvement in the production of good X causes the:
a. demand curve for X to shift to the right. b. demand curve for X to shift to the left. c. supply curve for X to shift to the right. d. supply curve for X to shift to the left.
What does economics have in common with sociology?
a. Economics and sociology ask fundamentally the same questions. b. Economics and sociology use the same tools to analyze issues. c. Both are social sciences. d. What and how economists study is very similar to what and how sociologists study. e. Explaining something about society is only a secondary purpose in both areas.
Suppose Iceland goes from being an isolated country to being an exporter of coats. As a result,
a. consumer surplus increases for consumers of coats in Iceland. b. producer surplus increases for producers of coats in Iceland. c. total surplus remains unchanged in the coat market in Iceland. d. it is reasonable to infer that other countries have a comparative advantage over Iceland in coat production.