Under a fixed exchange rate system, if an appreciation in the value of a country's currency develops, the monetary authorities must intervene by ________

A) selling foreign exchange
B) buying and selling the domestic currency
C) raising the foreign interest rate
D) buying foreign exchange

Economics

What are law-making lags? What effect do they have on the use of discretionary fiscal policy?

What will be an ideal response?

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Economics

When tax revenues are greater than government expenditures, the government has a budget

A) crisis. B) deficit. C) surplus. D) revision.

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Economics