An unsterilized intervention in which the central bank sells foreign assets to purchase domestic currency will result in
A) higher domestic interest rates.
B) lower domestic interest rates.
C) an increase in the money supply.
D) lower domestic interest rates and an increase in the money supply.
A
Economics
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Refer to the scenario above. What is the size of the labor force in the economy?
A) 6 million B) 3 million C) 4 million D) 5 million
Economics
Assuming initially that the required reserve ratio = 15%, the currency-deposit ratio = 40%, and the excess reserve ratio = 5%, a decrease in the excess reserve ratio to 0% causes the M1 money multiplier to ________, everything else held constant
A) increase from 2.33 to 2.55 B) decrease from 2.55 to 2.33 C) increase from 1.67 to 1.82 D) decrease from 1.82 to 1.67
Economics