A government may be able to reduce the international value of its currency by:

A. selling its currency in the foreign exchange market.
B. buying its currency in the foreign exchange market.
C. selling foreign currencies in the foreign exchange market.
D. increasing its domestic interest rates.


A. selling its currency in the foreign exchange market.

Economics

You might also like to view...

A reduction in the cost of cable TV subscriptions will ________ the ________ for televisions

A) decrease; supply B) decrease; demand C) increase; supply D) increase; demand E) None of the above is correct.

Economics

Stefano has just completed an original oil painting. After considering the costs for brushes, paint, canvas, and the value of Stefano's labor time, the marginal cost of the painting is $1,000. Lucky Stefano. One art lover paid him $1,500

How much producer surplus did Stefano obtain? A) The amount of producer surplus cannot be determined from the information given. B) $1,500 C) $1,000 D) $500

Economics

If arrival and departure delays are frequent early in the morning and late afternoons, but there are no delays during the evening hours, we can conclude that the airport authority

A. charges high landing fees at common departure and arrival times. B. is concerned about the delay times. C. is charging uniform landing fees throughout the day D. should reduce the number of flights during the busy times.

Economics

All other things unchanged, a decrease in the value of the dollar against the euro _______ U.S. net exports and shifts the aggregate demand curve to the _______.

A. increases, right B. decreases, right C. increases, left D. decreases, left

Economics