Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had flexible exchange rates, what effect would these flows have had on Venezuela's reserves account and value of the Bolivar (the Venezuelan currency)?
a. Reserves account would rise and value of the Bolivar would fall.
b. Reserves account would not change and value of the Bolivar would fall.
c. Reserves account would fall and value of the Bolivar would not change.
d. Reserves account would fall and value of the Bolivar would fall.
e. Reserves account would fall and value of the Bolivar would rise.
.B
You might also like to view...
Which firm is not dealing with adverse selection
a. a manufacturer requires a 90 day probationary period for new employees b. a temporary clerical agency requires a typing test c. a manufacturer contracts with suppliers regardless of ISO 900 . status d. Smokers get the worse life insurance rates as non-smokers
Attempts to keep the economy always within a hair's breadth of full employment is called
a. shock absorption. b. lagging. c. fine tuning. d. crowding out.