How A Central Bank Fixes the Exchange Rate?
Answer:The Central bank must always be willing to trade currencies at the fixed exchange rate with the private actors in the foreign exchange market to hold exchange rate constant....
The main reason(s) why governments sometimes
The main reason(s) why governments sometimes chose to devalue their currencies is (are):A.devaluation allows the government to fight domestic unemployment despite the lack of effec...
the following statements is the most accurate?
Under fixed exchange rate, which one of the following statements is the most accurate?A.Devaluation causes a rise inB.Devaluation causes a decrease inC.Devaluation has no effect on...
the following statements is the most accurate?
Under fixed exchange rate, which one of the following statements is the most accurate?A.Devaluation causes a decrease in output, a decrease in official reserves, and a contraction ...
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,...
Which one of the following statements is the most accurate?
A.Appreciation is a rise in E when the exchange rate floats, and revaluation is a fall in E when the exchange rate isB.Appreciation is a fall in E when the exchange rate floats, an...
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.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.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
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...
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...
