If a central bank does not want to allow the domestic currency to appreciate, it will ________ international reserves by selling its currency, thereby ________ the monetary base and increasing the risk of higher inflation
A) lose; decreasing
B) lose; increasing
C) acquire; decreasing
D) acquire; increasing
D
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Refer to Figure 3-4. If the price is $25,
A) there is a surplus of 300 units. B) there is a shortage of 200 units. C) there is a shortage of 300 units. D) there is a surplus of 200 units.
Based on the table above, if the wage rate is $500 and the price of output is $5, how many workers should the firm hire?
What will be an ideal response?
Which of the following items is NOT a deficit item in the balance of payments?
A) imports of merchandise B) sales of domestic assets to foreigners C) purchases of gold from foreigners D) military spending abroad
A profit-maximizing monopolist will never produce at an output level where: a. demand is elastic
b. it suffers economic losses in the short run. c. demand is inelastic. d. marginal cost is less than average total cost.