Consider That Britain Is Trying to Maintain a Fixed Exchange

question 42

Multiple Choice

Consider that Britain is trying to maintain a fixed exchange rate with respect to the U.S. dollar. However, the present situation in the foreign exchange market is conducive for the British pound to depreciate with respect to the U.S. dollar. Pressures are there to make British pounds appreciate and not depreciate. Which of the following interventions is most likely in this situation?

• A)The government of Britain should sell pounds and buy dollars.
• B)The government of Britain should do nothing as a fixed rate will not change.
• C)The government of Britain should buy pounds and sell dollars.
• D)The government of Britain should decrease the country's money supply.

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Definitions:

Intimate Relationships

Deeply personal and close connections between individuals, characterized by affection, love, trust, and intimacy.

Independence

The state of being self-reliant and not subject to control by others, often associated with the ability to make decisions and act on one's own.

Generativity

A stage of psychosocial development where individuals focus on guiding and nurturing the next generation, often by parenting or mentoring.

Ego Integrity

In Erikson's stages of psychosocial development, ego integrity is the final stage where the individual comes to terms with their life, leading to a sense of fulfillment and completion.