Suppose the government of New Country has fixed the value of its currency, the New Peso, at $1 per New Peso, but the market equilibrium value of the New Peso is $0.50 per New Peso. In order to maintain the official value of the New Peso the Central Bank of New Country must either ________ domestic interest rates, or ________the supply of international reserves by purchasing New Pesos
A. lower; decrease
B. raise; decrease
C. raise; increase
D. lower; increase
Answer: B
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Using the information in the table above, calculate the number of people in the labor force
A) 2500 B) 2100 C) 1500 D) 800
What is the inflation rate that most people know and use?
a. Cost of Living b. Producer Price Index (PPI) c. Consumer Price Index (CPI) d. Wholesale Price Index
A.W. Phillips found a
a. positive relation between unemployment and inflation in the United Kingdom. b. positive relation between unemployment and inflation in the United States. c. negative relation between unemployment and inflation in the United States. d. negative relation between unemployment and inflation in the United Kingdom.
When uncertainty over the timing of death is added to the LCH, this ________ the planning horizon and ________ the MPC for transitory income
A) shortens, raises B) shortens, lowers C) lengthens, raises D) lengthens, lowers