There are limits to the ability of monetary authorities to use sterilized intervention in the case of a surplus because
A. the central bank's ability to constantly obtain foreign currency for the sterilized intervention is constrained.
B. the central bank may be unwilling to increase its holdings of domestic currency.
C. foreign countries will increase political pressures on the country to allow its currency to appreciate.
D. the export level is fixed and it cannot be allowed to drop.
Answer: C
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Refer to the accompanying table. If the price of Good A is $2 and the price of Good B is $6, then the rational spending rule is satisfies when the consumer purchases ________ units of Good A and ________ units of Good B.UnitsMarginal Utilityof Good AMarginal Utilityof Good B1304022733315244814
A. 4; 3 B. 1; 1 C. 3; 2 D. 2; 1
Without automatic stabilizers
A. real GDP would fluctuate much more widely. B. real GDP would not be affected. C. the budget would be in balance during a time of recession. D. the real GDP would fluctuate less widely.