A central bank may be reluctant to see its currency appreciate because
A) rising prices of imports will contribute to inflation.
B) falling prices of exports will contribute to inflation.
C) the country's goods may become uncompetitive in world markets.
D) the country's monetary base will increase.
C
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An official settlements account balance of -$5,000 means
A) official reserves of foreign currency increased by $5,000. B) official reserves of foreign currency decreased by $5,000. C) the country is exporting more than it is importing. D) the country is importing more than it is exporting.
A firm's demand curve for labor slopes downwards because
A) firms supply less labor as the wage rate rises. B) of rising marginal product. C) workers supply less labor services as the wage rate falls. D) of the law of diminishing marginal returns.