In the case of an appreciating domestic currency, central banks often sell foreign currencies in exchange for domestic currency to stop the appreciation
Indicate whether the statement is true or false
FALSE
Explanation: They buy foreign currencies.
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The optimal efficiency wage requires
A. firms to pay any wage above the competitive wage. B. firms to pay the competitive wage. C. firms to pay fringe benefits. D. the total product curve to be downward sloping. E. firms to pay the unique wage above the competitive wage such that the elasticity of output with respect to wages equals one.
Historically, household debt in the U.S. had been:
A. rising steadily since the Great Depression until the early 2000s, when it accelerated. B. fairly constant since the Great Depression until the early 2000s, when it accelerated. C. fairly constant since the Great Depression until the early 2000s, when it declined. D. rising steadily since the Great Depression until the early 2000s, when it declined.
Recall the Application about the costs involved in opening a restaurant to answer the following question(s).Recall the Application. The $45,000 franchise fee that you would pay to Sonic (the owner of the Sonic Drive-In brand) is considered:
A. a variable cost. B. part of the marginal cost. C. part of the marginal revenue. D. a fixed cost.
When there is a surplus of a product in an unregulated market, there is a tendency for
A. quantity supplied to decrease. B. price to fall. C. price to rise. D. quantity demanded to increase.