If an economy has a fixed exchange rate and it chooses to issue $10 million in bonds, what will happen according to the Monetary approach?
A) It will have to increase its foreign exchange reserves.
B) It will have to decrease its foreign exchange reserves.
C) It will have to allow its currency to appreciate.
D) It will have to allow its currency to depreciate.
A
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Which statement about allocative efficiency is true?
a. Allocative efficiency requires productive efficiency. b. Productive efficiency leads to allocative efficiency. c. Allocative efficiency is profitable but wasteful. d. Allocative efficiency benefits firms but not society.
The effect of a drought on the price of an agricultural product will be greater the more __________ the demand for the agricultural product
A) price inelastic B) price elastic C) income elastic D) a and c E) b and c
Refer to the market graph shown below. A black market where the price is $2.00 could result from price:
A. Ceiling set at $2.50
B. Ceiling set at $1.50
C. Floor set at $1.50
D. Floor set at $2.00
The demand curve faced by a monopolistically competitive firm is more elastic than the monopolist's demand curve.
Answer the following statement true (T) or false (F)