A central bank's attempt to prevent an appreciation of its currency can stimulate domestic inflation if the ________ of its currency leads to ________ international reserves which ________ the monetary base
A) purchase; higher; increases
B) purchase; lower; decreases
C) sale; lower; decreases
D) sale; higher; increases
D
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Over the past five years, the population growth rate in Kabir’s country has been rising rapidly. How is this most likely impacting the country’s capital stock?
a. Capital stock per worker is increasing. b. Capital stock per worker is fluctuating rapidly. c. Capital stock per worker is declining. d. The population growth rate is not affecting the country’s capital stock.
Suppose that if the price of plane tickets increased, more people would choose to travel by train. If this happened, you would know that:
A. plane tickets and train tickets are complements. B. plane tickets are an inferior good. C. the cross-price elasticity between plane tickets and train tickets is negative. D. the cross-price elasticity between plane tickets and train tickets is positive.