A citizen in a developing country with a currency policy of convertibility on the current account could engage in all of the following transactions except:

A. sell foreign currency resulting from the exports of manufactured t-shirts.
B. sell foreign currency resulting from the sale of a U.S. treasury bond.
C. purchase foreign currency in order to import a BMW.
D. purchase foreign currency in order to purchase a U.S. treasury bond.


Answer: D

Economics

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A. $43,600 B. $42,100 C. $69,100 D. $45,100

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"If Mexico is currently operating at a point beyond its production possibilities frontier, then there are unemployed resources in Mexico." Is this statement true or false? Briefly explain your answer

What will be an ideal response?

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Discretionary fiscal policy is:

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Economics