The purchase of foreign currency by a central bank will tend to cause ________
A) an appreciation of the domestic currency
B) a depreciation of the domestic currency
C) an increase in the value of foreign exchange, but no change in the value of the domestic currency
D) a decrease in the value of foreign exchange, but no change in the value of the domestic currency
B
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A person who quits working because of a variety of excuses such as "unbearable office politics" or "difficulty to work in that environment" is described as being part of
a. discouraged workers b. counterfeit unemployment c. the underemployed d. displaced unemployment e. frictional unemployment
Does the existence of unemployment insurance eliminate the economic costs of unemployment?
What will be an ideal response?
If A and B are substitute goods, a decrease in the price of good A would:
A. have no effect on the quantity demanded of B. B. lead to a decrease in demand for B. C. lead to an increase in demand for B. D. none of the statements associated with this question are correct.
You notice that the price of butter falls and then rises. The best explanation for this is that:
A. demand for butter increased causing price to fall, which attracted other firms to enter the market causing supply to increase, which caused the price to go back up. B. demand for butter decreased causing price to fall, which attracted other firms to enter the market causing supply to increase, which caused the price to go back up. C. demand for butter decreased causing price to fall, which induced other firms to exit the market causing supply to decrease, which caused the price to go back up. D. demand for butter decreased causing price to fall, which attracted other firms to enter the market causing supply to decrease, which caused the price to go back up.