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 $2 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. lower; increase
C. raise; decrease
D. raise; increase
Answer: B
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Better health allows people to work harder, which raises a country's total income. This indicates that in effect, better health
A) shifts out a country's production possibilities frontier. B) is a primary cause of price increases. C) increases consumer surplus. D) reduces the incentive to work.
The countries that have made the least use of securities markets are ________ and ________; in these two countries finance from financial intermediaries has been almost ten times greater than that from securities markets
A) Germany; Japan B) Germany; Great Britain C) Great Britain; Canada D) Canada; Japan
Father-only single parent families have a poverty rate that is about equal to the national average poverty rate
Indicate whether the statement is true or false
In the simple linear regression model Yi = ?0 + ?1Xi + ui,
A) the intercept is typically small and unimportant. B) ?0 + ?1Xi represents the population regression function. C) the absolute value of the slope is typically between 0 and 1. D) ?0 + ?1Xi represents the sample regression function.