If a country wants to keep a foreign currency overvalued against the domestic currency:
A) it will buy both the foreign and domestic currency.
B) it will sell both the foreign and domestic currency.
C) it will buy the domestic currency and sell the foreign currency.
D) it will buy the foreign currency and sell the domestic currency.
D
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A foreign exchange intervention that lowers the exchange rate will also ________
A) increase the real interest rate B) decrease the money supply C) increase investment D) decrease international reserves
Most empirical studies show that the cost-savings provided by managed care are accomplished by
a. better preventive care. b. reducing the rate of hospitalization. c. denying access to costly specialty care. d. switching to generic drugs. e. all of the above.
It is _______ that protection makes a nation worse off because it induces the firms in that nation to produce more of the goods that are costly to make and; it is _____ that one nation can gain from international trade only at the expense of other nations.
A. true; true B. false; false C. false; true D. true; false
Discuss some of the general conclusions arrived at about supply-side tax initiatives.
What will be an ideal response?