If a developing country has sufficient reserves, the buying and selling of foreign currency by the central bank is:
A. likely to have a much smaller impact on the exchange rate than in developed countries.
B. completely ineffective on the exchange rate.
C. likely to have a much greater impact on the exchange rate than in developed countries.
D. likely to have roughly the same impact on the exchange rate as in developed countries.
Answer: C
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Compared to the distribution of money income, the distribution of income that takes into consideration the effects of taxes and in-kind benefits
a. is less even b. is the same c. is more even d. is fairer e. is less fair
How do macroeconomists differ from microeconomists?
a. the basic tools of analysis b. the underlying principles c. the use of abstractions and models d. the problems studied e. All of the above are correct.
A closed economy is one that
a. uses tariffs. b. uses quotas to restrict trade. c. uses exchange controls. d. does not trade with other nations.
A curve that shows the wealth distribution for the United States would be:
A. above the Lorenz curve for income. B. below the Lorenz curve for income. C. above the diagonal line. D. equal to the Lorenz curve for income.