Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had fixed exchange rates, these flows would have had the following effect on the reserves account and monetary base
a. Reserves account would rise and monetary base would fall.
b. Reserves account would not change and monetary base would fall.
c. Reserves account would fall and monetary base would not change.
d. Reserves account would fall and monetary base would fall.
e. Reserves account would fall and monetary base would rise.
.A
Economics
You might also like to view...
Which of the following is not a characteristic of less-developed countries?
a. High rates of illiteracy. b. High unemployment. c. Over half of the labor force in agriculture. d. Low savings and investment rates. e. Low infant mortality rates.
Economics
Which of the following is not an example of a consumption good? a. video games
b. a television c. a tractor d. a trip to Hawaii
Economics