To offset a decreased demand for its currency, a government fixing its exchange rate

A. must decrease the supply of the foreign currency.
B. must decrease the supply of its currency.
C. must buy gold or some other precious metal.
D. must make it illegal to buy its currency.


Answer: B

Economics

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Which of the following events will increase short-run aggregate supply?

A) an advance in technology B) an increase in resource prices C) an increase in the natural unemployment rate D) an increase in foreign income

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Stagflation at the end of the 1970s was marked by increasing inflation and unemployment

Indicate whether the statement is true or false

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Holding a currency to the gold standard works:

A. to the advantage of savers at the expense of borrowers. B. to the advantage of borrowers at the expense of savers. C. for no one, and hurts both savers and borrowers from access to money. D. for everyone, benefiting both savers and borrowers.

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The price of soccer balls increases from $35 to $40, and as a result, the quantity demanded decreases from 250 to 200 . Over this price range,

a. demand is elastic. b. demand is inelastic. c. demand is of unitary elasticity. d. there is insufficient information to determine the price elasticity of demand.

Economics