Trade sanctions were effective in getting Russia to exit Afghanistan after its 1979 invasion.

The difference between the nominal interest rate and the real interest rate is:

A. the inflation rate. B. taxes. C. seigniorage. D. hyperinflation.

In order to maintain a fixed exchange rate when demand for a domestic currency falls, the government must:

a) use its foreign currency reserves to buy domestic currency. b) use domestic currency to buy more foreign currency. c) print more money to boost the money supply. d) reduce interest rates to attract more demand for domestic currency.