Under the IMF fixed exchange rate system, a nation running a balance of payments deficit would have an excess __________ its currency in the foreign exchange market and that nation's central bank would have to __________ some of its currency to
maintain the fixed exchange rate. A) supply of; buy
B) supply of; sell
C) demand for; buy
D) demand for; sell
A
You might also like to view...
A change in tax rates
A) has a larger multiplier effect the smaller the tax rate. B) has a less complicated effect on GDP than does a tax cut of a fixed amount. C) will not affect disposable income. D) will not affect the size of the multiplier.
A "Just Say No" drug education policy that successfully educates consumers to reduce their demand for drugs will lower drug prices and reduce the quantity of drugs demanded
a. True b. False Indicate whether the statement is true or false
To complete the theory of exchange rates, a model should be created that:
a. accommodates short-run changes in variables. b. accommodates long-run changes in variables. c. accommodates changes in expectations. d. accommodates short-run and long-run changes in variables and changes in expectations
The domestic demand and supply for sugar are Qd = 700 ? 2P and QSD = 100 + 4P. The foreign supply is QSF = 150 + 3P. Suppose an import quota of 100 is imposed in the domestic market. How many units of sugar will domestic producers supply after the quota is imposed?
A. 500 B. 560 C. 350 D. 640