It Has Been Argued That the Exchange Rate Can Be

question 28

Multiple Choice

It has been argued that the exchange rate can be used as a policy tool. Assume that the UK government would like to reduce unemployment. Which of the following is an appropriate action given this scenario?

• A) Weaken the pound
• B) Strengthen the pound
• C) Buy pounds with foreign currency in the foreign exchange market
• D) Implement a tight monetary policy

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Definitions:

Tunicate

Invertebrate chordate that loses most of its defining chordate traits during the transition to adulthood.

Tunic

A layer or covering, often referred to in biology as the outer, fibrous covering of organisms such as tunicates or the covering around certain seeds.

Body Covering

The outermost layer or material that covers the body of an organism, such as skin, fur, feathers, or scales.

Venom

A toxic substance secreted by animals, such as snakes and spiders, often used to immobilize or kill prey and for defense.