Assume the exchange rate of the domestic currency is overvalued. What does the central bank need to do in order to keep the exchange rate fixed?
a. There is no need to intervene since the domestic currency is not undervalued.
b. It needs to increase the money supply by raising the discount rate.
c. It needs to sell the excess demand for foreign currency.
d. It needs to buy the excess supply of foreign currency.
e. It needs to decrease the money supply by lowering the discount rate.
.C
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Illegal immigrants make up about what percent of all construction workers?
A. 17% B. 5% C. 32% D. 53%
What is the theory of Second Best?
What will be an ideal response?
The benefit principle states that_____
a. people who benefit from the rule of law should pay taxes b. people who benefit from Social Security should voter for it c. people who benefit from a government activity should pay for it in proportion to their wealth d. people who benefit from a government activity should be those who pay for it
Which segment of the World Bank funds the world's poorest countries—those unable to repay its standard loans—such as India, Pakistan, Bangladesh, Nigeria, and Ethiopia?
a. the International Finance Corporation b. the International Bank for Reconstruction and Development c. the International Development Association d. the Multilateral Investment Guarantee Agency