A foreign exchange intervention that alters the domestic monetary base is:
A. impossible.
B. not likely to change domestic interest rates.
C. sterilized.
D. unsterilized.
Answer: D
You might also like to view...
What is new about environmental problems today is
A. that for the first time in history, we have environmental problems. B. the increased rate at which air and water pollution is occurring in the United States. C. the amount of attention the community now gives them. D. that environmental problems with pollution and garbage disposal have almost completely disappeared.
The Federal Open Market Committee:
A. makes decisions that influence the nation's fiscal policy. B. reports directly to Congress. C. makes decisions that affect excess reserves available to banks. D. determines who may buy and sell government bonds.
Assume that policy makers are pursuing a fixed exchange rate regime and that the economy is initially operating at the natural level. Which of the following will occur as a result of a evaluation?
A) The real exchange rate will be permanently higher in the medium run. B) The real exchange rate will be permanently lower in the medium run. C) The effects of this devaluation on the real exchange rate will be ambiguous in the medium run. D) The nominal exchange rate will initially increase in the short run and then decrease in the medium run. E) none of the above
Similarly to the Latin American region, the high-growth Asian economies experienced a Lost Decade in the 1980s
Indicate whether the statement is true or false