If a developing country has sufficient reserves, the buying and selling of foreign currency by the central bank is:
A. likely to have a much smaller impact on the exchange rate than in developed countries.
B. completely ineffective on the exchange rate.
C. likely to have a much greater impact on the exchange rate than in developed countries.
D. likely to have roughly the same impact on the exchange rate as in developed countries.
Answer: C
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Along a perfectly competitive industry's long-run supply curve
A) economic profits are positive. B) economic profits are zero. C) entrepreneurs earn an above-average rate of return. D) the number of firms is constant.
Economists generally oppose trade restrictions such as tariffs and quotas; however, if one these devices must be used, economists generally prefer tariffs to quotas
a. True b. False
The economy's money supply curve is vertical
a. True b. False
Which of the following statements best describes the effect of an increase in structural unemployment on an AD/AS diagram?
a. In an AD/AS diagram, an increase in structural unemployment will shift AS to the right. b. In an AD/AS diagram, an increase in structural unemployment will have no effect on AS or AD. c. In an AD/AS diagram, an increase in structural unemployment will shift AS to the left. d. In an AD/AS diagram, an increase in structural unemployment will shift AD to the left.