You have the following demand equation for a pack of cigarettes: Q = 200 - 0.30P with the average quantity 3 packs and average price $3.00 per pack. What is the price elasticity?

Under a fixed exchange rate regime, a central bank that does not want to acquire international reserves to keep its currency from ________ will decide to ________ its currency

A) depreciating; revalue B) depreciating; devalue C) appreciating; revalue D) appreciating; devalue

Official intervention in the foreign exchange market to defend a fixed-exchange rate when the value of the country's currency is under downward pressure causes

A. no change in the liabilities of the central bank. B. international reserve holdings to fall. C. the domestic money supply to rise. D. a downward pressure on the country's interest rates.