A change in a consumer's feelings about the desirability of a good will result in an altered slope of the budget constraint

In an attempt to maintain the peso exchange rate in 1994, the Mexican central bank

A) purchased dollars and sold pesos. B) sold both dollars and pesos. C) sold dollars and purchased pesos. D) purchased both dollars and pesos.

People hold money even during inflationary episodes when other assets prove to be better stores of value. This can be explained by the fact that money is

A) extremely liquid. B) a unique good for which there are no substitutes. C) the only thing accepted in economic exchange. D) backed by gold.