If there is a small surplus in the combined current account plus capital and financial account for a certain year, then to make the two accounts balance there will be:

A. An increase in the exchange rate
B. A decrease in the exchange rate
C. An increase in official reserve holdings
D. A decrease in official reserve holdings


C. An increase in official reserve holdings

Economics

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Describe the trends and fluctuations in the U.S. unemployment rate from 1980 to 2014

What will be an ideal response?

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According to the monetarists, when the expected rate of inflation rises, the short-run Phillips curve

a. shifts upward. b. shifts downward. c. is unaffected. d. None of the above

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The farm revolt (Populism) led ultimately to all of the following changes in society except

(a) Universal public education (b) Women's suffrage (c) Secret ballots (d) The vote for working men

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The answer is: "A geographic area in which exchange rates can be fixed or a common currency used without sacrificing domestic economic goals." What is the question?

A) What is a flexible exchange rate system? B) What is a managed float area? C) What is a purchasing power parity area? D) What is an optimal currency area?

Economics