When the actions of a central bank induce actions from other banks in the country
A) the other banks are reacting to an announcement effect.
B) the other banks are concerned about a penalty rate.
C) the other banks are acting to prevent liquidity problems.
D) the other banks are acting as fiscal agents.
A
Economics
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If the absolute price elasticity of demand is equal to 1 in the short run, then in the long run, other things being equal, the absolute price elasticity of demand will be
A) less than one. B) less than zero. C) greater than one. D) equal to zero.
Economics
If the British government fixes the exchange rate for its currency (the pound) below market equilibrium, it will contribute to a positive balance on current account
Indicate whether the statement is true or false
Economics