To stay with a fixed exchange rate system, a nation that is losing most of its international reserves will have no choice but to
A) ask for or declare a devaluation.
B) ask for or declare a revaluation.
C) let its currency depreciate.
D) let its currency appreciate.
A
Economics
You might also like to view...
People will want to hold more money if the price level
a. or if the interest rate increases. b. or if the interest rate decreases. c. increases or if the interest rate decreases. d. decreases or if the interest rate increases.
Economics
An adverse supply shock would directly ________ labor productivity by changing the amount of output that can be produced with any given amount of capital and labor. It would also indirectly ________ average labor productivity through changes in the level of employment.
A. increase; decrease B. decrease; decrease C. increase; increase D. decrease; increase
Economics