To maintain a fixed exchange rate, when the exchange rate moves above the target level, the central bank must
a. sell foreign currency from reserves.
b. buy foreign currency.
c. raise taxes.
d. raise government spending.
e. pass a law that increases the exchange rate.
B
Economics
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Describe the environmental Kuznets curve
What will be an ideal response?
Economics
If the game in Scenario 13.17 were to be infinitely repeated, waging a price war might be a rational strategy
A) because there would be no short-term losses. B) because the short-term losses might be outweighed by long-term gains from preventing entry. C) if the potential entrant were irrational. D) if the monopolist had excess capacity. E) if there were no sunk costs to the potential entrant.
Economics