Epsilon Is a Country Whose Unit of Currency Is the Omega

question 71

Multiple Choice

Epsilon is a country whose unit of currency is the omega. New information leads people to expect that the omega will appreciate next year. To keep the foreign exchange value of the omega fairly steady, the Bank of Epsilon will enough omegas on the foreign exchange market so that the omegas will .

• A) buy; demand for; increase
• B) buy; demand for; decrease
• C) buy; supply of; decrease
• D) sell; supply of; increase

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Definitions:

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