Under a Fixed Exchange-Rate System, Which of the Following Will

question 285

Multiple Choice

Under a fixed exchange-rate system, which of the following will not occur if the demand for the local currency rises?

• A)The central bank will accumulate foreign-exchange reserves.
• B)The domestic money supply will increase.
• C)As a result of the central bank's actions to maintain the peg, a positive item appears in the balance-of-payments statement.
• D)The economy will experience an increase in inflationary pressure.

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Definitions:

Longitudinal Personality Development Studies

Research studies that follow the same individuals over a period of time to observe changes in their personality.

Cohort Effect

The tendency for a research finding to be limited to one group, or cohort, of people, such as people all living during a particular era or in a particular location.

Attrition

The reduction in the number of participants or subjects in a study due to dropouts or failure to follow up.

Cross-Sectional Study

A study of personality development in which people of different ages are assessed at the same time.