Under a fixed exchange rate regime, if a central bank must intervene to purchase the ________ currency by selling ________ assets, then, like an open market sale, this action reduces the monetary base and the money supply, causing the interest rate
on domestic assets to rise. A) domestic; foreign
B) domestic; domestic
C) foreign; foreign
D) foreign; domestic
A
Economics
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Refer to Figure 18-1. Of the tax revenue collected by the government, the portion borne by producers is represented by the area
A) F + G. B) B + C. C) E + H. D) B + C + F + G.
Economics
In the aggregate expenditures model, if aggregate expenditures (AE) are less than GDP, then:
a. inventory is unchanged. b. inventory is depleted. c. employment increases. d. GDP decreases.
Economics