A central bank may be reluctant to see its currency appreciate because
A) rising prices of imports will contribute to inflation.
B) falling prices of exports will contribute to inflation.
C) the country's goods may become uncompetitive in world markets.
D) the country's monetary base will increase.
Correct Answer:
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Q33: If the central bank buys foreign assets,
A)the
Q34: The equilibrium exchange rate
A)is determined by the
Q35: If a central bank engages in an
Q36: Which of the following statements about a
Q37: If the Fed sterilizes the purchase of
Q39: The main reason central banks engage in
Q40: If a central bank wishes to lower
Q41: Which of the following was a result
Q42: The official settlement balance
A)is an amount that
Q43: The trade balance is
A)by definition, identical to
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