Consider that Britain is trying to maintain a fixed exchange rate with respect to the U.S. dollar. However, the present situation in the foreign exchange market is conducive for the British pound to depreciate with respect to the U.S. dollar. A fully sterilized intervention in the foreign exchange market by the British government is expected to cause
A. Britain to gain official international reserves.
B. the British money supply to fall.
C. the British money supply to remain unchanged.
D. the British money supply to rise.
Answer: C
Economics
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In recent decades, international trade has been
a. a constant percentage of U.S. GDP b. a declining fraction of U.S. GDP c. an increasing fraction of U.S. GDP d. declining as measured by total dollars spent e. constant as measured by total dollars spent
Economics