If a Country Starts with a Deficit in Its Official

question 59

Multiple Choice

If a country starts with a deficit in its official settlements balance, intervention to defend a fixed exchange rate will cause:

• A)the money supply to expand and the economy to grow.
• B)both the money supply and the economy to contract.
• C)the money supply to grow and the economy to contract.
• D)the money supply to contract and the economy to grow.

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Definitions:

Reference Variable

A variable that holds the address of an object, allowing for the indirect manipulation of the object itself.

Private Method

A private method is a function in object-oriented programming that can only be accessed or called within the class in which it is declared, enhancing encapsulation.

Legal Statement

A command or declaration in programming that follows the syntax rules of the language and can be executed or evaluated by the compiler or interpreter.

Public Methods

Functions within a class that are accessible from other classes and can be called from any instance of the class or directly from the class.