Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had flexible exchange rates, these flows would have had the following effect on the reserves account and monetary base
a. Reserves account would rise and monetary base would fall.
b. Reserves account would not change and monetary base would not change.
c. Reserves account would fall and monetary base would not change.
d. Reserves account would fall and monetary base would fall.
e. Reserves account would fall and monetary base would rise.
.B
You might also like to view...
In the above figure, what are the long-run equilibrium price level and real GDP?
A) 130 and $11.5 trillion B) 120 and $11.5 trillion C) 120 and $12 trillion D) 130 and $12 trillion
Great Bear Bank receives two new deposits of $100,000 and $140,000. If it has a required reserve ratio of 8 percent, how much of these deposits must Gold Bear keep in reserves?
a. $30,000 b. $120,200 c. $19,200 d. $220,800
High rates of saving and investing in the private sector promote economic growth by:
A. increasing human capital. B. improving technology. C. improving the social and legal environment. D. increasing physical capital.
Which of the following types of employment is inevitable whenever an employee loses his or her job?
a. cyclical b. frictional c. seasonal d. structural