If there is an excess supply of the domestic currency at a fixed exchange rate,

a. the currency will undergo a devaluation
b. the currency will appreciate
c. the country must switch to a floating exchange rate
d. the central bank must buy up that excess supply or the exchange rate will fall
e. the central bank must be up that excess supply or the exchange rate will rise

D

Economics

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In the wake of the financial crisis of 2007-2009, the debt-to-GDP ratio has risen in many countries around the world. Should the expenditures enabled by this debt be considered government consumption or government investment?

What will be an ideal response?

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