Everything Else Held Constant,if a Central Bank Makes an Unsterilized

question 6

Multiple Choice

Everything else held constant,if a central bank makes an unsterilized ________ of foreign assets,then the domestic money supply will ________ and the domestic currency will depreciate.

• A)purchase;increase
• B)purchase;decrease
• C)sale;increase
• D)sale;decrease

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Definitions:

Simplify

To simplify means to make something less complex or easier to understand, often by reducing it to its basic components.

Exponent Laws

Mathematical rules governing operations involving powers, such as multiplication and division of exponents.

Simplify

To make a complex problem or equation easier to understand or solve by reducing it to its basic components.

Evaluate

The process of determining the value of an algebraic expression by substituting the values of the variables and performing the operations indicated.