According to the monetary approach of the balance of payments MABP,an increase in U.S.money supply growth will cause the U.S.foreign reserves :
A) to fall, as foreign central bank selling its currency and buying U.S. dollars.
B) to fall, as foreign central bank selling U.S. dollars and buying its currency.
C) to rise, as foreign central bank selling its currency and buying U.S. dollars.
D) to rise, as foreign central bank selling U.S. dollars and buying its currency.
Correct Answer:
Verified
Q30: Action by a central bank to offset
Q31: Assume floating exchange rates.Suppose there are a
Q32: The monetary approach in the case of
Q33: The MAER emphasizes money demand and money
Q34: Assume there is a reduction in U.S.output.Then
Q36: Suppose the Bank of England is using
Q37: The official holdings of gold and foreign
Q38: When China's central bank authorities acquire U.S.dollars
Q39: Inflation from one country can be transmitted
Q40: According to the monetary approach,when a monetary
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents