When the real interest rate rises in the anchor country, ________
A) expansionary monetary policy will be used to maintain the interest rate peg
B) an economic stimulus is transmitted to pegged economies
C) there will be downward pressure on the value of pegged currencies
D) the anchor currency becomes vulnerable to a speculative attack
C
Economics
You might also like to view...
Price = MR only if the price is fixed
Indicate whether the statement is true or false
Economics
Refer to the figure. An increase in the number of highly skilled and educated potential immigrants would:
A. increase MB and increase the optimal quantity of immigrants.
B. reduce MB and reduce the optimal quantity of immigrants.
C. increase MC and increase the optimal quantity of immigrants.
D. reduce MC and reduce the optimal quantity of immigrants.
Economics