A central bank can sterilize the increase in the money supply that results from an intervention to defend a fixed exchange rate by selling domestic government bonds.
Answer the following statement true (T) or false (F)
True
You might also like to view...
Which of the following statements is true?
A) A monopoly is a price taker because it faces a downward sloping demand curve. B) A monopoly is a price maker because it faces a downward sloping demand curve. C) A perfectly competitive firm is a price taker because it faces a downward sloping demand curve. D) A perfectly competitive firm is a price maker because it faces a downward sloping demand curve.
A reduction the amount of oil (a resource) will tend to cause which of the following?
A) a reduction in output and a reduction in the price level B) a reduction in output with no change in the price level C) a reduction in output and an increase in the price level D) an increase in the price level and no change in output if accompanied by an increase in the money supply
Imposing a restrictive quota on imported plasma TVs will likely
a. increase the price of the plasma TVs and decrease the quantity consumed. b. increase both the price of the plasma TVs and the quantity consumed. c. leave the price of the plasma TVs unchanged but decrease the quantity consumed. d. leave the price and the quantity consumed of plasma TVs unchanged, because domestic producers will expand production to make up for the reduction in imports
According to the law of demand, a demand curve
A. Has a positive slope. B. Has a negative slope. C. Exceeds the economy's ability to produce. D. Is a horizontal or flat line.