Under a fixed exchange rate regime, a central bank that does not want to acquire international reserves to keep its currency from ________ will decide to ________ its currency
A) depreciating; revalue
B) depreciating; devalue
C) appreciating; revalue
D) appreciating; devalue
C
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Which of the following would be most appropriate if the Federal Reserve wanted to increase the money supply in order to stimulate the economy?
a. buy U.S. securities b. force the Treasury to reduce the national debt c. raise the discount rate d. increase the reserve requirements
During inflationary periods,
A. the real value of money rises. B. the real value of money remains constant. C. the real value of money falls. D. the purchasing power of money rises.
A firm is considering three projects. Each costs $1 million now. Project A will yield $400,000 a year for three years, beginning one year from now. Project B will yield $1.25 million three years from now, and Project C will yield $600,000 for two years,
beginning two years from now. If the interest rate is 8 percent, which of these projects should the firm undertake? A) Project A B) Project B C) Project C D) none of these
Refer to the information provided in Table 21.5 below to answer the question(s) that follow. Table 21.5
Refer to Table 21.5. The value of government spending in billions of dollars is
A. 100. B. 250. C. 350. D. 450.