A central bank's attempt to prevent an appreciation of its currency can stimulate domestic inflation if the ________ of its currency leads to ________ international reserves which ________ the monetary base
A) purchase; higher; increases
B) purchase; lower; decreases
C) sale; lower; decreases
D) sale; higher; increases
D
You might also like to view...
The equilibrium quantity of money in circulation is determined by:
A. the interaction of an upward-sloping money supply curve and a downward-sloping money demand curve. B. the Federal Reserve. C. the decentralized interactions between households and businesses. D. the nominal interest rate, real income, and the price level.
A firm uses labor and capital. To tell if the firm is technologically efficient, you
A) do not need to know the cost of labor or the cost of capital. B) need to know the cost of capital but not the cost of labor. C) need to know the cost of labor and the cost of capital. D) need to know the cost of labor but not the cost of capital.
Public choice theory argues that one reason for rational voter ignorance is the indivisibility of public service
a. True b. False Indicate whether the statement is true or false
Consider a medical breakthrough that led to the discovery of a simple microchip, which when inserted inside the human ear could prevent certain chronic diseases. The price elasticity of demand for that microchip would most likely be _____
a. highly elastic b. highly inelastic c. undefined d. negative only for high prices e. positive only for high prices