The buying and selling of foreign currency by the central bank is a trade policy whose objective is:
A. reducing purchases of assets abroad.
B. stabilizing the exchange rate against external shocks.
C. stabilizing the interest rate against foreign capital outflows.
D. promoting long term economic growth.
Answer: B
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Who controls a partnership?
A) bondholders B) the owners C) stockholders D) employees
Robert Lucas reflects the view of many economists when he argues that the most effective way to reduce world poverty is to:
A. take money from those who are very wealthy and give to those who are very poor. B. provide loans to developing countries. C. increase long-run growth. D. eliminate recessions.
Which of the following will lead to an outward shift in the firm's short-run demand for labor?
A. a reduction in average consumer income B. an increase in the price of output C. less capital per unit of labor D. a decline in labor productivity
A negative income elasticity implies that the good is an inferior good.
Answer the following statement true (T) or false (F)