Which of the following is NOT among the pressures imposed by the fixed-rate system on the government of a country that has ongoing international payments deficits?
A. The country faces a limit on its ability to sustain deficits.
B. The country's money supply increases substantially resulting in a higher inflation.
C. The country suffers deterioration in its creditworthiness.
D. If the country cannot sterilize, then its money supply will decrease.
Answer: B
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Joe buys chicken and beef. If the price of beef rises and the price of chicken does not change, Joe will buy ________ for the CPI
A) more beef and create a new goods bias B) more chicken and create a commodity substitution bias C) the same quantity of beef and chicken and create a commodity substitution bias D) less chicken and beef and create a quality change bias E) more chicken and eliminate the commodity substitution bias
The value of assets and the value of liabilities are equal for a financially healthy bank
a. True b. False Indicate whether the statement is true or false