If the Exchange Rate Is Higher Than the Fed's Target

question 341

Multiple Choice

If the exchange rate is higher than the Fed's target exchange rate, the Fed would

• A) implement purchasing power parity.
• B) implement interest rate parity.
• C) sell dollars.
• D) buy dollars.

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Cease-And-Desist Order

An administrative or judicial order prohibiting a person or business firm from conducting activities that an agency or court has deemed illegal.

Federal Trade Commission

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Environmental Protection Agency

A U.S. federal agency responsible for the protection of human health and the environment by writing and enforcing regulations based on laws passed by Congress.

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A measure of how far a vehicle can travel on a specific amount of fuel, reflecting the efficiency of the vehicle’s fuel consumption.