A speculative attack is:
A. a massive selling of domestic currency assets by domestic and foreign financial investors.
B. a presumptive decrease in the officially fixed value of a currency.
C. a presumptive increase in the officially fixed value of a currency.
D. the imposition of tariffs and quotas to prevent the inflow of foreign goods.
Answer: A
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This Application addresses the concept of
A) inflation and the housing boom. B) the dangers of high interest rates. C) increases in consumer wealth. D) the down-side of leverage.
A consumer has $100 to be spent on tables and chairs. If his income increases to $200, the prices of the goods remaining unchanged, his budget constraint:
A) pivots to the left along the vertical axis. B) pivots to the right along the horizontal axis. C) shifts to the left. D) shifts to the right.
As a society produces more and more of one good, it must give up increasing amounts of the alternative good. This demonstrates the
a. law of demand b. convexity of the production possibilities frontier c. law of increasing opportunity cost d. principle of productive inefficiency e. effects of shifts in the level of technology
The national debt
a. is currently greater than the annual federal deficit b. is reduced by the revenue generated from the federal deficit c. decreases as the deficit is reduced d. is a flow variable e. varies depending on developments in the stock market