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


C

Economics

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If a production process exhibits diminishing returns, then as output rises:

A. total fixed cost will eventually increase. B. total revenue will eventually decrease. C. marginal cost will eventually increase. D. average total cost will eventually decrease.

Economics

Answer the following statements true (T) or false (F)

1. There are no brand names in perfect competition. 2. Under conditions of perfect competition, no individual seller or buyer can influence price. 3. The entry and exit of firms drive economic profits to zero in the long run in a perfectly competitive industry. 4. Perfectly competitive firms are price takers. 5. Exit is blocked in perfect competition.

Economics

A nuclear disaster in an economy would cause

(a) An economy's PPF to shift outwards away from the origin. (b) A move along the PPF from left to right. (c) The PPF to shift inwards towards the origin. (d) A move along the PPF from right to left.

Economics

Exhibit 8-12 Marginal revenue and cost per unit curves As shown in Exhibit 8-12, if the firm's price is OD, the firm will supply

A. zero units of output because it is unprofitable. B. X units and incur a loss. C. Y units and break even. D. Z units and make an economic profit.

Economics