Open market operations that represent an attempt to offset short-term fluctuations in bank reserves are known as

If a country sets a pegged exchange rate that is above the equilibrium exchange rate, how can the country maintain the peg?

A) by purchasing surplus domestic currency at the pegged rate B) by purchasing surplus domestic currency at the equilibrium exchange rate C) by selling surplus domestic currency at the pegged rate D) by increasing the pegged exchange rate

Increase in capacity utilization will ________ the expenditure curve:

A) decrease. B) increase. C) not change. D) none of the above.