When a country’s currency is devalued,
A.outputB.outputC.the money supplyD.the money supplyE.Both B andAnswer: E. When a currency is devalued, output and the money supply expand as the economy’s equilibrium shifts outw...
A central bank’s international reserves include
A.any gold that itB.any silver that itC.any gold that it owns and foreign and domesticD.any silver that it owns and foreign and domesticE.only foreign and domestic assets.Answer: C
The liabilities side of a central bank include
A.deposits held by the privateB.currency inC.deposits held by the private banks and currency inD.deposits held by the private banks and currency inE.deposits held by the private ba...
Which one of the following statements is most true?
A.Any central bank purchase of assets automatically results in an increase in the domestic money supply, while any central bank sale of assets automatically causes the money supply...
Which one of the following statements is most true?
A.If central banks are not sterilizing and the home country has a balance of payments surplus, any associated increase in a foreign central bank’s claims on the home country impli...
Under fixed exchange rate, in general,
A.the domestic and foreign interest rates are equal, R = R*.B.R = R* + (Ee – E)/E.C.None of theD.E is equal toE.One of theAnswer: A
Under fixed rates, which one of the following
Under fixed rates, which one of the following statements is the most accurate?A.Monetary policy can affect onlyB.Monetary policy can affect onlyC.Monetary policy can affect only in...
which one of the following statements is the most accurate
Under fixed rates, which one of the following statements is the most accurate?A.Fiscal policy can affect output, employment, and international reserves at the same time.B.Fiscal po...
Which one of the following statements is the most accurate?
A.Fiscal policy has the same effect on employment under fixed and flexible exchange rateB.Fiscal policy affects employment less under fixed than under flexible exchange rateC.Fisca...
Which one of the following statements is the most accurate?
A.Fiscal policy has the same effect on output under fixed and flexible exchange rateB.Fiscal policy affects output more under fixed than under flexible exchange rateC.Fiscal policy...
Which one of the following statements is the most accurate?
A.A devaluation occurs when the central bank lowers the domestic currency price of foreign currency, E, and a revaluation occurs when the central bank raisesB.A devaluation occurs ...
Which one of the following statements is the most accurate?
A.Depreciation is a rise in E when the exchange rate is fixed, and devaluation is a rise in E when the exchange rateB.Depreciation is a decrease in E when the exchange rate floats,...
